23 Sep New Report Shows Student Loans Outpacing Other Household Debt In Certain Circumstances

Researchers from the Federal Reserve Bank of New York released “Quarterly Report on Household Debt and Credit” which found student loans outpacing other household debt among most severely delinquent loans. Here’s commentary from Inside Higher Ed on the report: “A new report shows student loans outpacing other household debt among most severely delinquent loans…Defaulted student loans have surpassed all other types of household debt classified as “severely derogatory,” including mortgage and credit card debt.” The article added, “Fed researchers defined severely derogatory debt as any kind of delinquent loan combined with a repossession, foreclosure, or charge off. The proportion of debt falling into that category in U.S. households has stayed fairly consistent for the past four years. But defaulted student loans now make up 35 percent of that debt.”