Other factors are likely to add more value to the overall economy at present, says Dr. Perryman.
Student debt has been a growing problem for years and needs to be thoughtfully addressed. Recently, there have been calls for some type of uniform debt relief as part of a stimulus package. That is not the best solution.
We recently passed a notable milestone in the long process of recovering from the Great Recession: household debt levels have surpassed the peak reached during the recession in 2008. In many ways, this rise in consumer debt is a good sign in that it indicates Americans are feeling optimistic enough to take on additional obligations. Moreover, housing markets and credit conditions have normalized to the point where mortgages are trending upward along with loan quality. On the other hand, it can be viewed in a somewhat more negative light in some respects, particularly given that one category responsible for significant growth is student debt which may not be providing adequate returns in terms of enhanced future earning capacity or other educational goals. Let's take a brief look at some of the salient points.