US taxpayers are on the hook for a $435 billion loss on the $1.37 trillion in student loans that were on the government’s books at the beginning of this year, according to an internal study by the Department of Education recently reported by the Wall Street Journal.
That’s before any loan forgiveness program that might come down the pike under the Biden administration. And the massive number doesn’t account for any student loans issued going forward. It also does not include student loans issued by private lenders but still guaranteed by the federal government.
Student loan debt continues to surge despite falling college enrollment.
In Q3, student loan balances rose by $23 billion from the second quarter, according to the latest Federal Reserve data.
Total household debt was over $1.6 trillion higher than the previous peak in 2008 even before the full force of the coronavirus pandemic government shutdowns hit the economy.
Household debt increased by $155 billion (1.1%) in Q1 to a total of $14.3 trillion, according to the latest data released by the New York Fed. The previous peak was $12.68 trillion in the third quarter of ’08 in the early days of the financial crisis.
Americans are driving the US economy along with borrowed money. The question is how much longer can it last?
Consumer debt surged once again in December as Americans charged up their credit cards for the holidays. Total consumer credit grew by $22.1 billion in December, according to the latest data released by the Federal Reserve. That represents an annual growth rate of 6.3%. Total consumer debt now stands at a record $4.197 trillion.
It was an eventful week as far as news goes, but a rather quiet one in the gold and silver markets. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey covers impeachment and the phase 1 trade deal. He also talks about politicians and their propensity to break things and then woo us with promises to fix them. It’s a little bit like an arsonist coming to the rescue and putting out the fire. Except in the case of government, the fire never really gets put out.
Even as student loan debt soars in the US, college enrollment is actually falling.
The post-secondary student headcount during the fall semester, including both graduate and undergraduate students, dropped 1.3% year-on-year, according to data released by the Student Clearing House. Enrollment in colleges and universities dropped by over 231,000 students to a total of 17.97 million.
Have you heard? The Democrats are going to fix the student loan mess! They’ve brought up the issue in almost every Democratic Party presidential debate. All we need is a good government program and we can easily solve this $1.64 trillion problem.
Never mind that government programs caused the problem in the first place.
Just how big is the problem? And how did we get here? And most importantly, why should you care? You can get all of the details in SchiffGold’s fully updated report “The Student Loan Bubble: Gambling with America’s Future.“
Consumer debt set another record in September, but the pace of borrowing appears to be slowing. This could signal trouble for an economy built on American consumers spending money they don’t have.
Total consumer debt grew by $9.5 billion in September, according to the most recent data released by the Federal Reserve. That represents an annualized increase of 2.8% and pushed total consumer indebtedness to a new record of $4.15 trillion (seasonally adjusted).
Consumers continued to pile on debt in August, according to the latest data released by the Federal Reserve. But credit card debt fell slightly, raising a troubling question: are consumers close to maxing out the plastic?
Total consumer credit grew by another $17.9 billion in August. That represents an annualized increase of 5.2% and pushes total consumer indebtedness to a new record of $4.14 trillion (seasonally adjusted).
Consumer debt is driving American economic growth.
Total outstanding consumer debt surged over $4.1 trillion in the second quarter of 2019, according to the latest data released by the Federal Reserve.
American indebtedness grew by 4.9 over the year, and the quarterly gain from Q1 to Q2 came in at $60 billion — the biggest second-quarter increase since Q2 2016. Over the last 12 months, American consumers have piled on an additional $208 billion of debt.