Strange as it may sound, U.S. Student Debt may be a catalyst to the next Crisis.

December 14, 2012

Strange as it may sound, U.S. Student Debt may be a catalyst to the next Crisis.

Pop Quiz! What line item is the largest asset on Uncle Sam’s balance sheet?

U.S. Official Reserve Assets
Total Mortgages
Taxes Receivable
Student Loans

The correct answer, as of the Flow of Funds report for Q1 2012, is … Student Loans.

The rapid growth in student debt has been a frequent topic in the financial press. Earlier this year the Consumer Financial Protection Bureau (CFPB) posted an article with the attention-grabbing title: Too Big to Fail: Student debt hits a trillion .

Student loans may be a liability on the consumer balance sheet, but they constitute an asset for Uncle Sam. Just how big? Nearly 35% of the total federal assets, over four times the 8.6% percent for the total mortgages outstanding.

The nation's total student debt load is growing at a terrifying $2,853 per second.

Here, an infographic.

Via The Week