Student Loan Debt Climbs To Record High $1.4 Trillion In 2019

Want to know what's holding back housing and family formation? Look no further than student loans.

There are some interesting, but misleading charts on the student debt problem in Experian's report: Student Loan Debt Climbs to $1.4 Trillion in 2019.

By misleading, I do not mean purposely so, nor do I mean inaccurate. I simply mean that on the surface one is likely to draw the wrong conclusions.

Please reflect on the above chart. I added the highlight in yellow and the comment.

While pondering, here are some additional charts.

Consumer Debt Balances by Credit Product

 

Student loans represent the second-largest credit debt for Americans, trailing only mortgage loans. Nationwide, there are more than 148 million outstanding student loan accounts.

There is nothing misleading about the highlight. I simply thought it was noteworthy.

Dubious Congratulations to North Carolina

 

What's Misleading?

I hope you gave this some thought.

14.4% of the population with student debt does not seem overwhelming.

But those under the age of 18 don't have much or any student debt. Those over the age of 40 don't have much or any student debt.

Concentration

  • Student debt is concentrated in age groups that have few assets.
  • Student debt is concentrated in age groups also struggling with credit card debt.
  • Finally, and most importantly, student debt mostly impacts those in age groups who may want to buy a home, get married, or start a family.

Housing Starts

On Tuesday I commented: Housing Starts Down Slightly: Single-Family Very Weak, Down 12.5% Year-Over-Year

Mortgage News Daily managed to spin the report as positive. It was really pathetic as the the above chart shows.

Single-family starts are well below where they were in 1959. And that is without accounting for rising population.

Piss Poor Monetary Policy

Fed policy bailed out the banks by creating another asset bubble.

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