Total household debt has climbed to a record $13 trillion. One factor driving overall American indebtedness higher is the ever-increasing burden of student loans, and a policy change being mulled by the Trump administration could cause that student loan bubble to pop.
Student loan debt stands at a staggering $1.4 trillion, owed by some 44.2 million borrowers. The average class of 2016 graduate has $37,172 in student loan debt. That represents a 6% increase from the previous year.
The University of Kentucky plans to blow up part of my youth.
Earlier this week, the UK Board of Trustees approved a plan to demolish the Kirwan Blanding dorm complex, including two 23-story residential towers. Apparently, kids aren’t willing to live two to a cell and share communal showers anymore. According to a story in the Lexington Herald-Leader, “those icons can no longer provide the housing spaces that students desire, so they are being demolished.”
Last summer, US Global Investors CEO Frank Holmes called debt “the mother of all bubbles.” That bubble continues to blow up.
US consumer debt increased even more than expected in September. According to data released by the Federal Reserve, total credit rose by $20.8 billion, an annualized rate of 6.6%. Analysts had expected an increase in the neighborhood of $18 billion. It was the largest increase in overall consumer indebtedness since last year’s holiday season.