US student loans — a ball and chain, not a time bomb
The US student loan market is in bubble territory. At $1.3tr, it is the country's second largest consumer debt segment after residential mortgages. Yet, even though 44m Americans are saddled with student debt, at an average of around $37,000 per borrower, student loans are more a drag on economic growth than a disaster waiting to happen.
Commentators often shout about how US student loans will be the next bubble to burst, blaming poor job opportunities and historically low wages for new graduates despite their unprecedented levels of higher education. The mortgage crisis is a common comparison, though not wholly apt.
Because so many
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