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Is the rise in student loan debt in the United States a source of economic fragility?

Author

Listed:
  • C. Mistretta-Belna.

Abstract

The balance of outstanding student loan debt has risen sharply in the United States since 2008. At the same time, economic prospects for young graduates have worsened, leading to an increase in defaults on student loans. The trend is already having visible repercussions on the US economy; however, the financial risks associated with student debt should remain limited.

Suggested Citation

  • C. Mistretta-Belna., 2014. "Is the rise in student loan debt in the United States a source of economic fragility?," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 35, pages 55-73, autumn.
    • Handle: RePEc:bfr:quarte:2014:35:04
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    References listed on IDEAS

    as
    1. Jaison R. Abel & Richard Deitz, 2013. "Do the benefits of college still outweigh the costs?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 20.
    2. Leila Bengali & Mary C. Daly, 2014. "Is it still worth going to college?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    3. Rothstein, Jesse & Rouse, Cecilia Elena, 2011. "Constrained after college: Student loans and early-career occupational choices," Journal of Public Economics, Elsevier, vol. 95(1), pages 149-163.
    4. AfDB AfDB, . "Annual Report 2012," Annual Report, African Development Bank, number 461.
    5. Jaison R. Abel & Richard Deitz & Yaquin Su, 2014. "Are recent college graduates finding good jobs?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 20.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    United States; student debt; securitisation; housing market;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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