5 Shocking Facts About Student Loan Debt
It has surpassed credit card debt and has twice the delinquency rate
A good education can make dreams come true, but for millions of Americans, paying for that education has become a nightmare.
A new analysis from the
The report, based on analysis of data on 241 million Americans from credit reporting agency
It's Bigger Than Plastic
Outstanding student loan balance now stands at about
...But with Tougher Repayment
According to one calculation, delinquency rates on student loan debt are nearly twice that of other household debt.
The New York Fed report estimates that past-due student loan balances equal
However, many student loan borrowers are not in repayment status for a variety of reasons, like being current students. Not counting these people, the report estimates that 21 percent of the total student loan debt burden in the U.S. is delinquent, and that more than one-in-four of the 37 million student loan borrowers represented in the
Growing Debt, Stagnant Wages
Unlike many goods that people buy with their credit cards, an education doesn't depreciate in value, and can in fact boost lifetime income by hundreds of thousands of dollars. Unfortunately, despite growing debt, some graduates aren't reaping those benefits.
From the second to the third quarter of 2011 alone, outstanding student debt grew by 2.1 percent. Data suggests that wages are not keeping up with that growing debt.
In 2006, new graduates left school with an average of
It's Not Just a Generation Y Problem
According to the New York Fed's report, 5.3 percent of the 37 million borrowers are age 60 and over, and another 11.8 percent are 50 to 59. This doesn't necessarily mean that boomers are going back to school (or still paying off their loans from the 1970s). Rather, it may be one sign that parents are increasingly taking out loans to pay for their kids' educations. According to a February report from the
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Personal Finance - 5 Shocking Facts About Student Loan Debt
(c) 2012 U.S. News & World Report