Student Debt Rising Mar07


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Student Debt Rising

U.S. consumer credit expanded in January, driven largely by a surge in federal student loans.

Consumer credit outstanding expanded by $17.78 billion to $2.512 trillion, Federal Reserve data showed Wednesday. The rise followed big gains in November and December. Economists surveyed by Dow Jones Newswires had forecast an $11.00 billion increase.

Nonrevolving credit–which includes student loans–was up $20.72 billion, to $1.711 trillion, the biggest dollar increase since November 2001. Federal student credit outstanding rose to $453 billion in January from $425 billion in December. The figure is up more than four-fold from 2008–a sign high joblessness in the U.S. has prompted many people to go back to school.

Revolving credit, which includes credit-card debt, decreased in January by $2.95 billion, to $800.85 billion. December revolving credit rose a revised $3.65 billion.

The consumer-credit report doesn’t include numbers on home mortgages and other real-estate secured loans. But the Fed data are important for the clues to behavior by consumers, whose spending helps propel the economy.

via Surging Student Debt Pushes Up Overall Consumer Credit – Real Time Economics – WSJ.

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