Deputy Treasury Secretary Sarah Bloom Raskin said in a speech on Monday that while student loan debt totals a record $1.2 trillion, the rampant growth could slow as the strengthening economy reduces the number of new loans, CollectionsCreditRisk.com reported today. "Total federal originations have fallen since their 2012 peak and originations per borrower have fallen since 2010," she said. "If these trends continue as the recovery strengthens further, they may noticeably slow the growth of outstanding student-loan debt." Student loan debt, however, still outpaces credit card and auto loan debts and Raskin called for measures to reduce delinquencies and defaults so as not to impair borrowers’ future access to credit. "Delinquency and defaults in sufficient numbers can undermine economic growth by crowding out other kinds of investment," Raskin said. "Negative credit events exacerbate access to not just mortgage credit, but also to other forms of credit."
