Tuesday, February 17, 2015

NY Fed Report: Student Loan Debt Piles Up; Now at $1.16 Trillion

While overall delinquency rates were unchanged at 4.3 percent in the fourth quarter, delinquency rates for auto loans and student loans worsened, according to the New York Federal Reserve.

“Although we’ve seen an overall improvement in delinquency rates since the Great Recession, the increasing trend in student loan balances and delinquencies is concerning,” said Donghoon Lee, research officer at the NY Fed. “Student loan delinquencies and repayment problems appear to be reducing borrowers’ ability to form their own households.”

 The chart below shows balance-weighted 90+ day delinquency rates by category of household debt.



Overall, student loan debt, according to the Fed, climbed in the fourth quarter of 2014 by $31 billion to $1.16 trillion. With the student loan delinquency rate increasing to 11.3%.


And this is what you get, when you have the government backing up student loans that no sane banker would make if the loans weren't backed up by the government.

All this money floating around for student loans also, btw, drives up the cost of a college education. Without the government, through its loan backing, directing Fed money printing in the direction of the education sector, college education would be much, much cheaper--and much more useful.

--RW

8 comments:

  1. How horrible that money is getting pumped into education. LOL, horrible for the Koch Bros machine that wants to deny science and sell junk economics.

    ReplyDelete
    Replies
    1. Your impression of a raging pussy is pretty good.

      Delete
    2. College does not equal education, r-tard.

      Delete
    3. "How horrible that money is getting pumped into education."

      LOL. The ignorance is as thick as a brick here.

      Delete
    4. Oh Boy, Muk has found his way here. I guess trolling Peter Schiff was getting too boring for him/her.

      Delete
  2. Mak Muk
    I''m going to hazard a guess that you owe student loans ---- you obviously either didn't read or comprehend the last sentence in the article. Perhaps you should have taken a Critical Thinking course instead of community organizer studies.

    ReplyDelete
    Replies
    1. Mak Muk is just a Leftist troll. I've seen that troll all over the place.

      Delete
  3. funny that when the Mak Muks of the world pitch up here, they always figure we are in league with the Kochs...

    ReplyDelete

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