New York’s Federal Reserve Bank held a press briefing this week to discuss its quarterly report on household debt and credit, and it contained some sobering numbers on student debt. According to the presentation by Senior Economist Donghoon Lee, student debt has now reached almost one trillion dollars, nearly tripling between 2004 and 2012. Moreover, excluding borrowers not in repayment, almost 30 percent of all student loans are delinquent.
Lee’s graphs tell a harrowing story. Here’s one that shows the percentage of 25-year-olds with debt inexorably increasing in the last decade:
Look through the full powerpoint slide deck from Lee’s presentation to get a big picture view of the economic costs resulting from our current higher ed system. It’s why innovative degree programs like this one are hitting the scene not a moment too soon.