Remember the housing bubble? Now, what keeps some economists up at night is the growing amount of student loan debt.
FM News 101 Business Expert Julia Anderson says college loan debt has crossed the one-trillion dollar mark– more than all of our credit card debt. She says kids are coming out of college with an average of $26,000-$29,000 of student loan debt. The figure is much higher for specialties like medicine.
Anderson says the years it’ll take to pay off that debt means young people are putting off buying houses, buying cars, getting married, having children, or saving for retirement. All that is bad for our consumer-driven economy, she says.
Student loan debt has been piling-up for some time. Anderson says many people who lost their jobs during the Great Recession had no choice but to borrow money to go back to school to learn new skills. Students have also been facing huge increases in the cost of higher education.
Anderson says almost half the students attending the University of Oregon this year have taken out loans to help pay for the cost of getting a degree. Costs at U of O can run as high as $41,754 for a non-resident, $24,582 for residents, according to Anderson.
Julia Anderson is heard Thursdays at 6:49am and 8:49am.