Student Loans Not a Macro Problem

We keep hearing that Student Loans will derail the U.S. economy, but from these data series, I cannot see how that happens short of a much bigger recession. Via Torsten Slok:

“The latest data shows that 16% of student loan borrowers have a balance bigger than $50k. With 44 million student loans outstanding this means that 7 million people or around 2% of the US population have a student loan balance bigger than $50k. The bottom line is that student debt is not a macro issue. Put differently, if student loans were really a big drag on the economy why is the economy then doing so well? For more see also my latest client presentation here.”


Source: Deutsche Bank Research


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