“There’s a systemic problem in the student loan market that doesn’t exist in the other asset classes. Students need to get a job that allows them to pay off their debt. The delinquency rate will rise as long as students aren’t graduating with degrees that pay back that cost.” – John Hupalo, Invite Education
This recent Bloomberg Article shows just how bad its gotten. Student Loan Debt has grown 157% since 2008, while mortgage loans total sit at 0% growth. Student Loan debt has the highest 90+ delinquency rate of all forms of household debt, more than 10%. Compare this to 1.1% for mortgages and 4% for autos.
I personally know a woman, accomplished and using her degree, who cannot repay her student loan, which is preventing her from being able to afford a home. This problem is creating a systemic drag on the economy and “crippling demand for other services.” Now, with interest rates rising after ten years, its only going to get worse.
IMHO we need to figure out how to address this issue as a nation…