Friday, May 4, 2012
Chart of the Week: Student Loans
While consumer installment credit has expanded in recent months, much of the growth in non-revolving credit has been fueled by student loans. The chart above shows the increase in non-revolving consumer credit with student loans broken out. Student loans have accounted for the majority of the increase over the past two years.
ABA Chief Economist James Chessen commented. “In September 2009, legislation was enacted barring private lenders from participating in the guaranteed student loan program.. Since then, the federal government has directly funded and guaranteed $305 billion in student loans with the taxpayer being the ultimate guarantor of these loans.”