Student loans still growing faster than any other debt
More bad news for student loan borrowers: student loan debt is growing faster than any other type of debt–and more and more borrowers are falling behind on their payments.
High delinquency for student loan borrowers
According to the most recent consumer debt report by the Federal Reserve Bank of New York released on February 18, 2014, student loan debt is outpacing debt from credit cards, mortgages, auto loans, and HE Revolving loans.
And that’s not all–the percentage of student loans that are 90+ days delinquent is growing fastest as well.
Student loan balances on the rise
Back in 2010, outstanding student loan debt in the United States surpassed outstanding credit card debt for the first time.
And it’s continuing to grow–it reached $1 trillion in 2013 and currently stands at $1.2 trillion.
While the other four types of debt have remained stable or decreased over the past few years, student loan debt has risen dramatically.
Change is necessary to solve student loan crisis
Ideally, students should avoid taking on student debt as much as possible. Finding affordable colleges that fit your needs is the first step to avoiding student debt.
But student loan borrowers are struggling, and something radical needs to be done. In the meantime, a borrower’s only option is to choose the best student loan repayment plan for their situation and attempt to pay off their college debt as quickly and painlessly as possible.
If you have any questions about paying off your student loan debt or finding affordable colleges, give us a call at 1-888-234-3907 or contact us.