Student Loans Soar To Record $1.111 Trillion, Up 12% In Past Year

Student Loan debt

We have covered the topic of the student loan bubble extensively in the past so we won’t waste more digital ink on where it comes from or what it means for the troubled US consumer, suffice to report that according to the Fed, in Q1 total Federal student loans rose by another $31 billion to a record $1.11 trillion, and up a whopping $125 billion, or 12% from this time last year.

For all the talk that the student loan bubble may have popped the demand for cheap, uncle Sam loans certainly is as strong as ever. The one places where the bubble may have popped, however, is the amount of delinquencies: at 11% it means that some $122 billion in student loans will never be repaid. And considering the Fed historically does a woeful job of accurately estimating the true delinquency rate, we would estimate that at this moment some $250-$300 billion in student debt is already 1 or more months delinquent with no intentions of ever being repaid.

Student loan Delinquencies 2


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