After years of skyrocketing prices on everything from textbooks to tuition, the student debt load being carried around in the United States has graduated to a new level.
In the third-quarter, total outstanding student debt increased $33 billion from the previous quarter to $1.03 trillion, according to the latest Household Debt and Credit Report from the Federal Reserve Bank of New York. While other organizations have already measured college debt to be above the trillion-dollar mark, this is the first time in history the Federal Reserve has done so.
“This quarter, we observed an increase of household balances across essentially all types of debt,” said Donghoon Lee, senior research economist at the New York Fed. “With non-housing debt consistently increasing and the factors pushing down mortgage balances waning, it appears that households have crossed a turning point in the deleveraging cycle.”