Auto loans could pose a bigger threat to young Americans than student loans
For the first time, the outstanding volume of auto loan debt just surpassed student loan debt
The Covid-era student loan payment hiatus ends on Oct. 1 and borrowers and economists are alarmed.
Borrowers, on average, will have to pony up about $390 a month to service their loans, while economists expect a hit to U.S. consumer spending of $15.8 billion per month.
That might be the least of the financial challenges ahead for young borrowers. According to the New York Fed, for the first time the outstanding volume of auto loan debt just surpassed student loan debt.
Auto loan debt now totals $1.582 trillion, compared with $1.569 trillion in outstanding student loans.