Home > Uncategorized > US student loan borrowers are increasingly struggling to repay their education debt (2 charts)

US student loan borrowers are increasingly struggling to repay their education debt (2 charts)

from David Ruccio

delinquency

An increasing number of student loan borrowers are struggling to repay their education debt as outstanding student loan balances nationwide increased by $13 billion in the third quarter of 2015, according to the New York Federal Reserve.

The percentage of student loan borrowers who are at least 90-day delinquent in payments rose to 11.6 percent during the third quarter of 2015, up from 11.5 percent the previous quarter. The Fed said the 11.6 percent number likely understates delinquency rates “because about half of these loans are currently in deferment, in grace periods or in forbearance and therefore temporarily not in the repayment cycle. This implies that among loans in the repayment cycle delinquency rates are roughly twice as high.”

total debt

Outstanding student loan balances increased to $1.20 trillion as of 30 September 2015. That’s higher than all other forms of individual debt (such as home equity, autos, and credit cards), except home mortgages.

  1. Jim Cronin
    November 25, 2015 at 8:05 pm

    The increase in student loan debt makes me happy that my grandchildren are residents of Tennessee, where the Tennessee Promise program makes available to students who meet certain educational criteria two years of community college tuition free. My wife and I were fortunate that we could give both of our children a college education with no debt. I do fear, however, that parents of children who will enter college within the next 20 years will find it impossible to provide their children with a college education without incurring significant debt.

  2. November 26, 2015 at 8:21 pm

    Students should not pay and those that did should ask for a refund.
    Or maybe, perhaps they should sue “Occupy Wall Street”.
    Or maybe join AARP and discover; there is a solution available, they have only to USE THEIR VOTE !
    “Don’t forget about the non-dischargeable student loans.”
    A solution so simple, it will not be done.
    “QE 4 Student”
    SOLUTION TO STUDENT DEBT. “QE 4 STUDENTS” Fed to purchase all student debt and issue all future student debt.This is already allowable by law: Fed may purchase an asset (loan). All loans will be at 1% for 72 years and payment to the US Treasury will be set at 5% of the students post graduate income until paid in full or borrower becomes deceased.
    To all student loan holders, and there are millions of you, why not have the power of ‘social media’ get you on the road to recovery and prosperity ? Read more, Google or Bing “Justaluckyfool”

    A solution so simple, it will not be done.
    “QE 4 Student”
    SOLUTION TO STUDENT DEBT. “QE 4 STUDENTS” Fed to purchase all student debt and issue all future student debt. All loans will be at 1% for 72 years and payment to the US Treasury will be set at 5% of the students post graduate income until paid in full or borrower becomes deceased.
    PERIOD,Separate private banks from government !
    Read more: http://bit.ly/MlQWNs ;
    Elizabet Warren For President–“QE 4 Student Loans”
    June 14, 2013
    http://webofdebt.wordpress.com/2013/06/14/elizabeth-warrens-qe-for-students-populist-demagoguery-or-economic-breakthrough/comment-page-1/#comment-45175
    PLEASE,PLEASE EVERYONE, SHARE THIS A MILLION TIMES.
    May I repeat,
    ” Carl Herman, on June 14, 2013 at 9:34 am said:
    Great article, Ellen; thank you. The power of our ideas must continue to resound until they resonate with the public’s critical mass if we’re ever to have money and banking serve the public.

    We’ll do the best we can and discover all together what we can create.

    All we have is good-faith effort and trust that we’re here on this beautiful but dominated planet for good reason :) ”
    And:
    ” pm , on June 14, 2013 at 11:08 am said:
    There is no rational excuse for the politicians in Washington D.C. not to pass this bill, except for the fact that it upsets their banker overlords…”
    Justaluckyfool says, “Amend the Fed” Make it a central bank that works For the People. Stop working for the Private For Profit Banks.

    ****Great article, Ellen; thank you.****
    If they don’t pass the bill “YOUR FIRED” ”Have Elizabeth Warren as Vice President”

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