"Our initial findings on the size of the private student loan market are sobering. When we add in the outstanding debt in the federal student loan program, it appears that outstanding student loan debt hit the trillion dollar mark several months ago – much larger than estimates from other recent reports. It seems that this market is too big to fail.
Unlike other consumer credit products, student debt keeps growing at a steady clip. Students borrowed $117 billion in just federal student loans last year. And students continue to borrow private student loans, which lack the income-based repayment and deferment options of federal student loans. If current trends continue, there will be consequences not just for young people, but for all of us."
|Tuition CPI, Housing CPI, Medical CPI, All CPI, Wage growth (source)|
I made a chart at the St. Louis Fed's site showing Student Tuition CPI, Housing CPI, Medical Care CPI, All Items CPI, and Wage growth since 1978. Tuition inflation outperformed every other measure (except wages during the mid-to-late 1990s), and it looks like it just broke below the 5% year-over-year growth level, which was the bottom during the mid-to-late 1990s. So, will the lower growth trend in tuition inflation continue due to a lower return on investment? View the student tuition chart with all of the variables here. Below is the chart without "wage and salary disbursements".
|Student Tuition CPI YoY% vs. Housing, Medical Care, All (St. Louis Fed)|