Student Loan Delinquencies Rise Hand in Hand with Consumer Debt
by
Gregory Mark Fitzgerald on Feb. 08, 2019
Bankruptcy & Debt Credit & Debt Bankruptcy & Debt Collection Other Education
Summary: The Federal Reserve Bank of New York reported in November 2018 that student loan delinquencies had risen 9.1%, compared to the 8.6% increase in the second quarter. This spike was noted as the largest jump in seven years.
"Considering the average 20- to 30-year-old borrower is beholden to loan servicers for over $350 a month on average, it comes as little surprise to find that they may not only be severely financially stressed, but also falling down on the job when it comes to actually sending the money. This is even more of a problem for borrowers with private student loans in comparison to those with federal loans; those with the latter may at least be able to take advantage of a wide range of alternative repayment plans, along with programs like forgiveness, wiping the slate clean permanently."
Read the entire article on the official Fitzgerald & Campbell, APLC blog.