Student-Loan Delinquencies Now Surpass Credit Cards
Even as the economy shows signs of improvement, a record share of Americans are falling behind on their student-loan payments.
The proportion of U.S. student loan balances that are in delinquency — that is, unpaid for 90 days or more — surpassed that of credit-card balances in the third quarter for the first time, according to the Federal Reserve Bank of New York.
Of the $956 billion in student-loan debt outstanding as of September, 11 percent was delinquent — up from less than 9 percent in the second quarter, and higher than the 10.5 percent of credit-card debt, which was delinquent in the third quarter. By comparison, delinquency rates on mortgages, home-equity lines of credit and auto loans stood at 5.9 percent, 4.9 percent, and 4.3 percent respectively as of September.
With the release of these figures, student-loan debt officially takes the crown from credit-card debt as that most prone to delinquency in the U.S.