The Student Debt Crisis: Could It Slow the U.S. Economy? - Knowledge@Wharton

Student debt has more than tripled since 2004, reaching $1.52 trillion in the first quarter of 2018, according to the Federal Reserve — second only to mortgage debt in the U.S. College costs have outpaced the Consumer Price Index more than four-fold since 1985, and tuition assistance today is often harder to come by, particularly at schools without large endowments. As for the effect on the economy in general, Federal Reserve chairman Jerome Powell said in March that slowed growth isn’t showing up in the data yet. But, he warned: “As this goes on and as student loans continue to grow and become larger and larger, then it absolutely could hold back growth.” http://knowledge.wharton.upenn.edu/article/student-loan-debt-crisis/