Today the Fed released the latest data on US consumer credit. Once again, student loans represent the dominant component of consumer debt growth (see post). This debt shows up as "non-revolving credit" owned by the federal government in the Fed's data.
|Source: Barclays Capital|
Barclays Research: - .. since the start of 2011, total revolving consumer credit outstanding has risen by just $15.9bn while nonrevolving credit has increased by $312.6bn. Nonrevolving consumer credit held by the government, which is comprised of federal student loans, has risen by $266bn over that period, according to our seasonal adjustment process. ... we think that the costs of federal student loan programs are being understated and that they could pose a significant fiscal challenge to the US government in the future.This is not going to end well.
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