Since our last discussion on government sponsored student loans, the Fed has released more data on consumer credit. The results are the same: without the government sponsored student loans the US consumer credit has been flat to slightly down for months. But with student loans (non-revolving credit) included, the overall number is now approaching the "bubble" peak (07-08). The federal government is in effect re-inflating the consumer credit bubble with nearly a half a trillion dollar student loan portfolio.
|$mm, source: the Fed|