JNN 02 Mar 2013 New York : The New York Federal Reserve says the total student loan debt in the United States has almost tripled over the past eight years, approaching one trillion dollars.

The figure has increased to $966 billion as of the fourth quarter of 2012, almost tripling from 2004 to 2012, the organization stated in a report issued on Thursday.

The number of borrowers and the average balance per person also increased by 70 percent, with the number of borrowers late on their loan payments growing from under ten percent in 2004 to 17 percent in 2012.

People with a high burden of student loans are also prevented from purchasing other types of credit, particularly home mortgages, the report said.

The New York Federal Reserve also stated that student debt is the only kind of household debt that continued to rise through the Great Recession and now has the second largest balance after mortgage debt.

More students are attending college and more parents are taking out loans for their children’s education, which has contributed to the substantial growth in student debt, the report said.

Other contributing factors include a longer stay for students in college and a higher matriculation rate for graduate school, delays in loan payments through deferments and forbearances, and difficult student debt discharge as the balance stays with the borrower, the reserve’s report stated.

As the Elementary School and Upto High School the Education in United States is free for all the Nationals , but all type of Professional Education & Degree Programs are very expensive even for the Normal Mediocre Class Citizens they are Unaffordable , And due to Expensive in Nature and Plus the  Economic crisis which has led every citizen in deep crisis, Majority of the Student have to acquire loans to pay the fees to continue and to complete the Degree Program at one or the other stage , and due to that the National Debt on account of Education has risen upto a level of about US$1Trillion. Which has put more Pressure on the already Burdened exchequer and the Austerity measure which the Government has to take to re coup with the ever sinking economy, The Federal Reserve is unable to add any Financial aid or loan to the Students .

The automatic budget cuts in the US will cease allotments of federal financial aid for as many as 280,000 students nationwide.

In 2005, a new law was passed which made it nearly impossible to release private student loans in bankruptcy.