Student Loan Delinquencies Soar
Late last year, total student debt outstanding surpassed $1 trillion for the first time. Now, the problem of student loan delinquency is generating its own eye-popping numbers.
New data released today shows 11% of student loans were 90 days or more past due in the third quarter, up from 8.9% in the previous quarter and 8.8% a year prior, according to the Federal Reserve Bank of New York. It’s also the highest since at least 2003, when the bank first started tracking student loan delinquencies. “It’s a red flag and a warning sign that more Americans are struggling to repay their student loans — things are bad, really bad, and getting worse,” says Rich Williams, higher-education advocate at the U.S. Public Interest Research Group, a nonprofit based in Washington.
The latest data comes at a time when delinquencies on many other consumer debts, including credit cards and mortgages, are dropping. Overall, delinquency rates on outstanding consumer debt fell to 8.9% in the third quarter, from 10% a year prior, according to the FRBNY.
Source: MarketWatch. Read full article. (link)
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Student loan debt is already more than $1 trillion and it’s one of the most serious problems for the American economy. On the other hand, there’s a problem on a job market because to pay off student loans graduates need money, but not many employees want to hire you in case you have no job experience. Student loan debt is even more than a credit card debt and I think that government should take this problem very seriously, otherwise, the debt will only grow and harm the American economy and educational system.