Student Debt’s Grip on the Economy


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American student loan debt has gotten out of control. New research from the Federal Reserve is reviewed in this article showing just how bad the situation is.

Total student debt — $1.3 trillion — is more than double what it was as recently as 2008 and is more than Americans have racked up for cars or credit cards.
But wages for college-­educated workers have only recently shown gains. They rose 6.6 percent from 2014 to 2016, as the labor market improved, but that still leaves them a mere 4.5 percent above where they were in 2002. Wage gains would have to be considerably more robust to handle rising debt burdens.

The New York Times

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