Deutsche Bank Report Says Student Loan Debt Is a ‘Micro Problem’
It may be “micro” on a macroeconomic scale, but it hardly seems small to anyone struggling with educational debt.
That $1.6 trillion in student loan debt floating around in the U.S. economy? Not that big a deal in the grand scheme of things, according to Torsten Slok, chief economist at Deutsche Bank Securities.
Student debt is a hot-button issue, and Senator Elizabeth Warren’s proposal to cancel such debt for many borrowers strikes a visceral chord for anyone who’s struggled with the loans. But viewed next to the $104 trillion in household net worth, that $1.6 trillion is more of an unfortunate “micro problem” for individuals than a macro problem for the economy, Slok said. Some 0.8 percent of the U.S. population have student loan balances that top $100,000. Loan balances for most of the 14 percent of the U.S. population with student loans are between $10,000 and $25,000.