Federal student debt lending swells, as does number of loan delinquencies
U.S. student-loan debt rose by $42 billion, or 4.6%, to $956 billion in the third quarter, the Federal Reserve Bank of New York said Tuesday. Overall household borrowing fell during that period.
Payments on 11% of student-loan balances were 90 or more days behind at the end of September, up from 8.9% at the end of June, a rate that now exceeds that for credit cards. Delinquency rates for all other consumer-debt categories fell or were flat.
Nearly all student loans—93% of them last year—are made directly by the government, which asks little or nothing about borrowers’ ability to repay, or about what sort of education they intend to pursue…
Unlike most other types of consumer credit, student debt is extremely difficult to discharge in bankruptcy. After falling behind on payments, a borrower typically finds it harder to obtain other types of consumer loans, or can only do so at higher interest rates.
Blowback
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So my masters degree in Womyn’s Studies won’t pay my school loan?
trs on November 28, 2012 at 12:23 PM
We should have known 0bama had this election in the bag in September or early October when he didn’t bother to float the idea of student loan forgiveness.
CurtZHP on November 28, 2012 at 12:23 PM
Seize university endowments and pay it back.
Eat the rich.
Big Bird.
forest on November 28, 2012 at 12:25 PM
The schools seem to be doing just fine.
Jabberwock on November 28, 2012 at 12:27 PM
I blame the Fat Cats at Big Education.
Flange on November 28, 2012 at 12:27 PM
It won’t even pay for your birth control.
CurtZHP on November 28, 2012 at 12:29 PM
‘If college students didn’t have to pay for their own birth control, they could easily pay off their loans.’ – Future ‘PERSON of the YEAR’ Sandra SlutFluke.
Pork-Chop on November 28, 2012 at 12:32 PM
Would love to know the delequency rate before the govt took over the industry.
Pick a time, lets say 87-93 or so when the economy was in the crapper.
Rich on November 28, 2012 at 12:32 PM
But…. but…. How can there be problems with a Federal program?
There are financial geniuses in Washington running it! They wouldn’t screw anything up, would they?
UltimateBob on November 28, 2012 at 12:33 PM
Don’t worry kiddies, the King will fix that for you.
JPeterman on November 28, 2012 at 12:39 PM
Lesbian, Gay, Bisexual, Transgender, Queer Studies is a degree program offered at DePaul university.
Because if one thing can be said in these uncertain economic times, it is important to know the different challenges facing both gays and queers.
What’s the difference between a gay and a queer, you ask? Well, you knuckledragger, if you went to university, you’d know the answer to that!
keep the change on November 28, 2012 at 1:07 PM
No problem … we’ll just tax the rich more to pay for it.
darwin on November 28, 2012 at 1:09 PM
One is happy go lucky, and the other is just weird?
Flange on November 28, 2012 at 1:20 PM
Can someone correct me if I have this wrong?
-Recent generations have been strongly encouraged to attend college as the only way to get a job / continue their middle class existence.
-Said young people apply and attend colleges in great number at the naieve age of ~18 years old with little guidance. With the increased demand and the knowledge that people are willing to pay almost anything to “guarantee” future success, tuition prices skyrocket.
-Laws get passed, for whatever reason, that make student loans impossible to deal with in bankruptcy.
-Through no fault of their own the economy tanks and no one is willing to hire younger age groups for anything resembling a reasonable wage.
-The generation largely responsible for both the housing and higher education bubbles then begins to deride younger people for being useless idiots.
Must be nice to be a baby boomer.
RINO on November 28, 2012 at 1:28 PM
Yes. Every problem we face today has been caused by government, not “baby boomers”.
darwin on November 28, 2012 at 1:36 PM
Good thing Americans elected a president with a sound background in business, financial, and commerical matters.
Oh, wait.
BuckeyeSam on November 28, 2012 at 1:36 PM
Say, is Obama going to start showing up on college campuses campaigning for nationwide student-loan forgiveness, shouting the line, “Where’s yo Stafford Act dolla?”
BuckeyeSam on November 28, 2012 at 1:39 PM
Right, and then you look at who the largest voting group is, and who makes up the majority of the government.
RINO on November 28, 2012 at 1:41 PM
So baby boomers forced Social Security down America’s throat? Most people didn’t want it. Baby boomers forced Medicare down America’s throat? How about all the other entitlements? ObamaCare? I think the blame lays with ideology and not age. Socialists have been working at this for nearly a hundred years and they’re about to see all their work come to fruitition … a “fundamentally transformed” America. Of course it won’t last long. Soon we’ll have riots and chaos like Greece.
darwin on November 28, 2012 at 1:49 PM
The robbery is coming from all sides, the worst of which is Obamacare. Go to any job listing location and look at the number of temp jobs vs permanent jobs. A regular, permanent job is going to be a luxury — it pretty much already is. No one wants to deal with health benefits anymore.
But the difference is that the animous towards college kids and recent graduates seems largely restricted to the right.
RINO on November 28, 2012 at 2:06 PM
What’s your point? Most probably shouldn’t have gone to college to begin with. Most come out highly indoctrinated and unable to write much less speak coherently. Most have no idea of the history of the US and believe that everything liberal is good and everything conservative is bad. The indoctination is easily overcome by doing a modicum of research on their own but most don’t.
darwin on November 28, 2012 at 2:27 PM
The Scariest Chart Of The Quarter: Student Debt Bubble Officially Pops As 90+ Day Delinquency Rate Goes Parabolic
tom daschle concerned on November 28, 2012 at 2:32 PM
What’s your source for that claim?
RINO on November 28, 2012 at 2:33 PM
Not everyone should go to college. Most people can’t afford to go to college. Look at the charts in the link I posted above. That is a huge bubble that is going to pop. $1T in liabilities.
Most people going to school study majors that provide zero productive value to society. They graduate with tens if not hundreds of thousands in debt and make coffee for you at $10/hr. I have a friend with 3 fine arts degrees and $120,000 in SL debt. He teaches high school. He will never be able to pay the loans off.
That is CRIMINAL.
tom daschle concerned on November 28, 2012 at 2:35 PM
I have no source, just personal experience. Young people are by definition … young and inexperienced. Unfortunately the left has taken advantage of that. The left doesn’t want kids to succeed, or think freely and independently.
Don’t get me wrong, the reeducation of our kids needs to be an almost underground movement … but it needs to be done. Once unleashed younger people have the drive and innovation to possibly save what’s left of America.
darwin on November 28, 2012 at 2:46 PM
There’s a pretty big difference between being inexperienced and being illiterate which is what you claimed.
The left has screwed them pretty hard, they will figure it out, didn’t Romney get a majority of white 18-29 voters? Or close to it?
RINO on November 28, 2012 at 2:54 PM