The cited research [1] must have been written by an auto dealership. They conclude that since the monthly payment-to-income ratio has not increased, that all is well.
Using their own data and a loan amortization calculator I conclude something quite different:
1992
Avg Graduate Debt: $20,000
Avg Loan Length: 7.5 Years
Avg APR: 8.3%
Monthly Payment: $299
Total Repayment: $26,933
2010
Avg Graduate Debt: $41,000
Avg Loan Length: 13.4 Years
Avg APR: 5.5%
Monthly Payment: $360
Total Repayment: $58,061
While the a $299/mo to $360/mo jump over the course of nearly 20 years is indeed small, I still think there's a serious issue here.
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[ 4.4 ms ] story [ 11.6 ms ] threadUsing their own data and a loan amortization calculator I conclude something quite different:
While the a $299/mo to $360/mo jump over the course of nearly 20 years is indeed small, I still think there's a serious issue here.[1] http://www.brookings.edu/~/media/research/files/reports/2014...