Debt from educational loans in the
U.S. rose 3.4 percent to $904 billion in the first quarter,
according to the Federal Reserve Bank of New York.
Outstanding student debt increased from $874 billion three months earlier, the New York Fed said today in a report. The total includes loans that are backed by the U.S. government as well as private borrowing by students and their parents.
Student-loan debt surpassed credit-card debt in the second quarter of 2010. In the year ended March 31, outstanding student debt rose by $64 billion from a year earlier, while all other forms of household debt fell a combined $383 billion, according to the report.
“Student loan debt continues to grow even as consumers reduce mortgage debt and credit card balances,” Donghoon Lee, senior economist at the New York Fed, said in a statement accompanying the report. “It remains the only form of consumer debt to substantially increase since the peak of household debt in late 2008.”
Ninety-day delinquency rates for student loans increased to 8.69 percent from 6.13 percent in the first quarter of 2003, higher than that of mortgages, auto loans and home equity lines of credit, the New York Fed said.
Read more: http://www.bloomberg.com/news/2012-05-31/student-loan-debt-rose-to-904-billion-in-first-quarter.html
Outstanding student debt increased from $874 billion three months earlier, the New York Fed said today in a report. The total includes loans that are backed by the U.S. government as well as private borrowing by students and their parents.
Student-loan debt surpassed credit-card debt in the second quarter of 2010. In the year ended March 31, outstanding student debt rose by $64 billion from a year earlier, while all other forms of household debt fell a combined $383 billion, according to the report.
“Student loan debt continues to grow even as consumers reduce mortgage debt and credit card balances,” Donghoon Lee, senior economist at the New York Fed, said in a statement accompanying the report. “It remains the only form of consumer debt to substantially increase since the peak of household debt in late 2008.”
Ninety-day delinquency rates for student loans increased to 8.69 percent from 6.13 percent in the first quarter of 2003, higher than that of mortgages, auto loans and home equity lines of credit, the New York Fed said.
Read more: http://www.bloomberg.com/news/2012-05-31/student-loan-debt-rose-to-904-billion-in-first-quarter.html
1 comment:
Student loan debt is probably the biggest problem for the American economy. It grows with each day because prices for college tuition are extremely high and that's why low and middle income families just can not afford to send their student to college. Many people believe that college degree can help to make a successful career and that’s why they take higher education as an investment. But paying off student loans is so hard, some people make payments till their senior age. Job market remains weak and there are not so many jobs available for recent graduates. Many young borrowers often use online payday loans to make payments on their college debts. The US government should pay more attention to this problem and try to make college tuition available for everyone.
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