Soaring Student Loan Bad Debt
As of September, 2012 11 percent of the $956 billion in student-loan debt outstanding was delinquent, higher than the 10.5 percent of credit-card debt. Delinquency rates on mortgages, home-equity lines of credit and auto loans are at 5.9 percent, 4.9 percent, and 4.3 percent. Overall student debt (largely taxpayer dollars at risk) keeps growing. After first surpassing credit-card debt in mid-2010, the amount of student-loan debt outstanding has become 42 percent larger than the $674 billion of credit-card debt outstanding.
The average college student who graduated in 2011 had $26,600 in student loans, according to a new report, which estimates two-thirds of last year’s college graduates had student loan debt. More than five million student loan borrowers have at least one loan past due. 96 percent of graduates from four-year, for-profit colleges took out student loans, borrowing 45 percent more than graduates of other types of colleges.