Student debt will surpass $1 trillion this year but S&P doesn’t believe it will affect short-term credit. Long-term effects are a risk according to a report from S&P:
- Since 2008 home ownership rates for those with a history of student debt are down 10% compared to 5% for those without
- Auto sales experiencing the same trend, to an lesser extent
- Changes to bankruptcy laws could change scenario but would likely spark move to co-signers
- A strengthening economy and jobs picture could mitigate the risks
