Loans taken out by U.S. college students to finance their educations stood at $1.4 trillion as of the end of 2017, according to the Federal Reserve Bank of New York and credit reporting agency Equifax. That makes college student debt the second-largest household liability after mortgages, and bigger than either auto loan or credit card debt.
Over the past decade, student loan debt in the nation has more than doubled after adjusting for inflation. Loan delinquency rates have also climbed during that period as more and more former students have fallen behind on their loan payments.
Recent graduates saddled with large monthly loan repayments may lack the wherewithal to purchase a home or a car, or start a business (research by the Philadelphia Fed shows that increased student debt reduces small-business formation).
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