"The Federal Reserve Bank of New York says that overall consumer debt dropped about $60 billion, to $11.66 trillion, in the third quarter. But as consumers cut their mortgage and credit card debt, they apparently were loading up on student loans."
"In its August report, the New York Fed reported student loans outstanding at $550 billion. Its revised figure shows that in the second quarter, the amount outstanding was actually $845 billion — 53.7 percent higher than what was first reported. In the third quarter, total student-loan debt was $865 billion. These figures dwarf credit card debt, which was $694 billion in the second quarter and $693 billion in the third."
"The New York Fed report is only the latest to reach a certain conclusion: Student-loan debt is reaching incredible heights. Last year, total student-loan debt passed total credit card debt for the first time."
"Mark Kantrowitz, publisher of FinAid (www.finaid.org), one of the best sites for college financial aid information, has created a Student Loan Debt Clock at www.finaid.org/loans/studentloandebtclock.phtml. The clock is an estimate of current student-loan debt outstanding, including both federal and private student loans. My last check showed more than $960 billion."
"Here’s what concerns me: All the estimates point to a disturbing milestone. If families continue the current borrowing trend, total student-loan debt will soon reach $1 trillion."
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