Michael Taylor, CFA®
by
Global Research Analyst

Key takeaways

  • Today, U.S. student loan debt stands at $1.4 trillion. This amount is roughly $850 billion greater than it was at the end of 2007.
  • Total outstanding student loan debt has increased significantly in the past decade due to rising college costs, higher enrollment, and underutilization of college savings plans.

What it may mean for investors

  • We believe that the current level of U.S. student loan debt does not pose a significant threat to financial markets. Yet, the outstanding debt load likely will remain a challenge for the economy and borrowers for the foreseeable future. This sizeable debt burden could impede future consumer spending and delay some younger consumers from making home purchases and forming households.

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