Fears about student loans still look overdone

The latest data from the New York Fed have reignited concerns about a possible bubble in student loans. But the growth of student loans has always been faster than the growth in other types of household debt, largely because more students are going into higher education and the cost of that education has risen more rapidly than average consumer prices. The growth rate of student loans has actually been on a long-term downward trend, while the contraction in other types of household debt has eased. Both of these developments are positive.