In a series of events that mirror that of the 2008 housing crisis and subsequent fall out, the troubled loans involve former students and graduates who have not been able to keep pace with their payments. Americans owe more than $1.4 trillion in student loan debt, which is spread out over some 44 million borrowers – far exceeding the $620 billion owed to U.S. credit card companies. The average graduate in 2016 has more than $37,000 in student loan debt – an increase of six percent from just one year earlier.
Meanwhile, the student loan delinquency rate, as reported by the Federal Reserve, is 11.2 percent. The Consumer Federation of America reports $137 billion federal student loans had not been paid for at least nine months last year, which is a 14 percent uptick in just a single year. Continue reading