We all know that student loans have been growing out of control. But how much? A new chart in The Atlantic compares the growth of student loans with the growth of household debt:
What’s astonishing about this chart is that even the blue line–representing household debt–is abnormally steep. The line represents growth in household debt inclusive of the period between 1999 and 2008, when household debt tripled due to the housing bubble. But compared to the red line–student debt–household debt has been rather tame!
What does this all mean? The Atlantic argues that student debt will cause a period of low economic growth, as new entrants to the labor force end up repaying student loans instead of buying goods and services.
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