For the first time, the amount of unpaid student loans will exceed $1 trillion this year, according to a report by the Federal Reserve Bank of New York. Last year, $100 billion in school loans were taken out, the most ever.

According to the report, Americans now owe more on student loans than on credit cards. But lenders and taxpayers are unlikely to lose money on students loans, because unlike subprime mortgages made during the real estate bubble, Congress may have given broader “collection powers” to school lenders, according to USA Today. For young people, the debt could hinder a large group of people from purchasing basic, but essential items.

“Students who borrow too much end up delaying life-cycle events such as buying a car, buying a home, getting married (and) having children,” said Mark Kantrowitz, publisher of

Nick Pardini, a Villanova University graduate student, sent a warning on his blog that student loans are the next credit bubble. He told USA Today that the loan crisis will “create a generation of wage slavery.”

College Board reports that a full-time undergraduate student borrowed $4,963 in 2010, an increase of 63 percent from one decade ago.