Student Loan Debt: Massive and Past Due

The N.Y. Federal Reserve just completed this study on student loan debt. Total outstanding student loan debt in the U.S. is $870 billion. 15.4% of the 241 million people in the United States who have a credit report with Equifax, the company that provided data to the Fed, carry student loan debt. And get this: Adjusting to exclude student loan debtors who are in a grace period, about 25% of student loan debt is in default (to be precise, about 21% of all student loans and about 27% of all student loan debtors). These rates are far higher than the delinquency rates for credit card debt, mortgages, and car loans.

So, what will happen? It strikes me as unlikely that most of the debtors will be able to pay their way out of default. Will the taxpayers foot the bill?  Bear in mind that, except in unusual circumstances (what the law calls "undue hardship"), student loan debt cannot be discharged in bankruptcy.

Read more about the issue in today's LA Times.

Comments

[Cash Advance]

Student loan debt recently has reached it's critical point - $1 trillion.Price for the education in the US is extremely high and millions of young people who wants to attend the high school find a solution in applying for a student loan.But at the same time lots of people do not pay their debts off.There are many factors that explain this huge figure in $1 trillion.It's not so easy to get a first job after the graduation and to pay off the student loan debt graduates need a job and a wage that will allow to do that.Idea of a student loan is good because it makes an education affordable, as everybody knows, good education is one the main priorities for the US,but at the same time too many people, huge debt, unemployment...All these factors make a real problem.

[SamedayPayday Loans Online]

Student loans are given to the mother and father whose children are seeking their academic programs in their specific school or institutions. The plus mortgage is given on the foundation history of credit or score and on the cost of presence. The Government plus Bank loan have a low rate and has easy reimbursement options and the reimbursement generally starts within 60 to 90 days after the payment of the loan.

[Milan Moravec]

Foreign student tuition subsidized and instate tuition doubled by UC Berkeley Chancellor Birgeneau.
University of California Alumni and University of California Berkeley Alumni: Fire University of California Berkeley Chancellor Birgeneau