The Federal Reserve announced that more Americans owe on student loans, private and federal, than on typical revolving loans such as credit card debt. By some accounts, federal student loans outstanding are close to $606 billion, and for private they are $167.8 billion. These combined are almost $7 billion higher than the revolving credit loans.

While it seems a good thing to see American people paying down their credit card debt, the fact that close to $300 billion in student loans have been incurred in just the last four years is a bit disheartening to see.

Student Loan Debt Higher then Credit Card Debt

The revolving credit debts reached a high in 2008 of $975.7 billion according to federal data statistics. This means that people have paid fairly close to half of that debt down in just a few years. People that carry both debts are more than likely to pay the credit card off first because of the higher interest rates involved.

One must also look at the fact that tuitions have gone up in the last few years, which means the student loans have also gone up. More people will pay higher student loans for education than paying for necessities with a credit card, also.