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.