And more than ever, they’re borrowing in the form of student loans as the cost of higher education has far outpaced inflation. Since mid-2008, mortgage, home equity and credit card debt have shrunk while the amount of student debt has more than doubled. The increase in student debt accounts for nearly all of the increase in overall household debt. Overall, Baradaran said Americans are no better prepared for a recession than they were in the run-up to 2008. “I think a lot of people did learn their lesson, but people need student loans to go to college,” Baradaran said.

Source: Los Angeles Times September 09, 2018 10:01 UTC