The Fed's Financial Accounts: What Are Uncle Sam's Largest Assets?

Federal Reserve's Financial Accounts: Student Loans

The rapid growth in student debt has been an ongoing topic in the financial press. The first chart illustrates the dramatic growth of federal student loans since the Great Recession, using a logarithmic scale to highlight the percentage change. The difference between the 2007 and 2024 figures is striking, showcasing the rapid expansion of this asset. The loan balance has risen an astonishing 1,313% over that time frame, most of which dates from after the Great Recession.

This chart presents the same data on a linear scale, emphasizing the sheer magnitude of the increase in student loan balances. The steep upward trend underscores the increasing financial burden on students and the government's role as a major lender.

These chart only includes federal loans to students. Private loans increase the debt burden. The Federal Reserve Bank of New York regularly tracks household debt and credit. In their most recent update, they calculate student loan debt to be $1.6 trillion.

But back to our initial questions: What does Uncle Sam actually own, and which asset is the largest?

Student loans may be a liability on the consumer balance sheet, but they constitute an asset for Uncle Sam. As of Q4 2024, student loans accounted for the largest percentage of total Federal assets at 33.5%. This is nearly twice the size of the U.S. Official Reserve Assets (19.8%), more than twice the size of Checkable Deposits and Currency (16.1%), almost four times the size of Taxes Receivable (9.0%), and over eight times the size of total mortgages (4.1%).

To better visualize the relative weight of student loans in the government's asset portfolio, this chart shows the percentage of total federal assets that are student loans, over time. It shows the peak in 2017, where student loans made up 46.7% of total federal government assets, and the current value of 33.5%.

Federal Reserve's Financial Accounts: Total Financial Assets

The composition of the U.S. government's largest assets has shifted over time. Student loans, though currently dominant, have been preceded by other categories. Other Loans and Advances held the largest share from the late 1970s to the early 1990s, and again in the late 1990s. U.S. Official Reserve Assets were the largest in the mid-1990s and for the majority of the 2000s, until 2012. A brief exception occurred during the Great Financial Crisis, when Checkable Deposits and Currency became the largest asset, something we saw more recently as well in 2020.

Here's a look at each of the assets over time from the pie chart above beginning in 2007.

U.S. Official Reserve Assets These assets are held by the U.S. government, primarily the Federal Reserve, in foreign currencies, gold, and special drawing rights, used for international financial transactions. They serve to support the U.S. dollar and manage exchange rates.
Checkable Deposits and Currency This represents the total amount of money held in checking accounts and physical currency in circulation within the economy. It's a core measure of the money supply. The significant spike in 2020 reflects the impact of the CARES Act and the government's efforts to inject liquidity into the economy during the pandemic.
Other Loans and Advances This category encompasses loans provided by the Federal Reserve to financial institutions, beyond standard credit facilities. It can include emergency lending during financial stress.
Total Mortgages This reflects the aggregate value of outstanding mortgage debt held by various sectors of the economy. It's a key indicator of the health of the housing market.
Corporate Equities This represents the total value of stocks held by various entities. It's a measure of the value of corporate ownership and a key component of financial wealth.
Trade Receivables These are amounts owed to businesses by their customers for goods or services already delivered. It represents short term credit extended by businesses.
Total Taxes Receivable This signifies the amount of taxes owed to the government but not yet collected. It's an indicator of potential future government revenue.

Of course, assets are, sadly, the trivial side of Uncle Sam's Financial Accounts balance sheet — about $4.54 trillion. The liability side totaled over $33.89 trillion at the end of Q4 2024.

Read more updates by Jen Nash