Student Debt’s Grip on the Economy

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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