From, “What a Drag!”
by Jonathan R. Laing, 4/16/12, Barron’s:
You don't need a Ph.D. in math to know that student-loan
debt is compounding at an alarming
rate. In the last six weeks alone, two new government reports have detailed the
growing student debt burden, which has no doubt contributed to the weak
economic recovery and could remain a drag
on growth for decades to come.
First came a report early last month from the Federal
Reserve Bank of New York stating that the $870 billion in loans carried by some
37 million present and former students exceeded the money owed by all Americans
for auto loans, as of the Sept. 30 end of the government's 2011 fiscal year.
It's also greater than credit-card debt.
The report went on to note that delinquencies, officially
reported at about 10% of outstanding loans, were actually more than twice that
number when things like loan-payment deferrals for current full-time students
were properly accounted for.
Drag: the action of
pulling something forcefully or with difficulty
Compound: to pay
(interest) on both the accrued interest and principal
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