The average student loan balance among 25-year-olds w/ studentdebt has increased 91% since 2003

I AM NOT A LOAN ‏@iamnotaloan

The average #studentloan balance among 25-year-olds w/ #studentdebt has increased 91% since 2003
http://huff.to/13kE82C


http://www.huffingtonpost.com/2013/04/17/student-debt_n_3100940.html?utm_hp_ref=college&ir=College

BOSTON -- The overhang of student debt on young workers may inhibit consumption and future borrowing, researchers at the Federal Reserve Bank of New York warn, potentially imperiling the economic recovery for years to come.

In a new study, New York Fed researchers said Wednesday that younger workers with student debt are less likely than their unburdened peers to have home mortgages or auto loans -- the first time that has been observed in at least 10 years and a worrying development for policymakers who have traditionally associated student debt with college education and higher incomes.

Borrowers with student loans also shed other forms of consumer debt at a much higher rate than borrowers without educational debt, the researchers found, in a sign that consumers with student loans may have lowered their expectations for higher future earnings and may have less access to loans as a result of rising student debt despite their "comparatively high earning potential."

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"Lowered expectations of future earnings and more limited access to credit may have broad implications for the ongoing recovery of the housing and vehicle markets, and of U.S. consumer spending more generally," the New York Fed researchers cautioned.

(More at the link. Remember that Plutonomy in the US reveals that the top 20% or so of the rich are the actual economy of the country, and that what occurs to the bottom 80% doesn't affect them much at all, except to provide cash cow opportunities such as foreclosure land grabs and interest on debt.)