Student loan demand at record high — from reuters.com
NEW YORK (Reuters) – As lenders continue to curtail access to mortgages, credit cards and other types of loans, one area of the credit market is rapidly expanding: student loans.
“You have a whole generation of consumers who have never had this debt load, so they’re walking into this tough unemployment situation with higher degrees of debt,” Adams said. “Young adults probably face higher taxes ahead, and a national system overloaded with debt.”
The growth in student loans comes as other types of credit are drying up. A higher savings rate means less demand for credit, while supply is down as lenders increasingly target only the lowest-risk borrowers with strong credit scores.