Day: 2015/02/22

NY Fed: Only 37 Percent of Student Loans in Repayment, Not Delinquent

I didn’t promise I’d cover it, but here it is, you lucky-duckies:

NY Fed--Student Loan Repayment Status in 2014

But I particularly relished the part at the end:

Some [the Brookings Institution] have argued that rising student debt and slow repayment are not particularly worrisome. After all, the story goes that if households can afford the modest payments they are making, then why worry about the cost of debt? But, of course, widespread failure to repay is a problem for the lender, in this case, federal taxpayers. We don’t fully understand yet how the burden of large amounts of debt on households’ balance sheets for long periods of time affects student borrowers’ behavior, but our research so far suggests that growing student debt has contributed to the recent decline in the homeownership rate and to the sharp increase in parental co-residence among millennials.

That, my readers, is as close as the Liberty Street gang is ever going to get to smacking-down the Brookings Institution.