According to John Hechinger with Bloomberg News, student loans are the second-largest category of consumer debt (second to home mortgages), a fact that has quite an impact on many young people in their early twenties who aren’t finding work in this economy.
While it seems true that the housing market is improving in many areas of the country, it’s also true that things aren’t rosy across the board from the financial perspective, if Hechinger’s piece is any indication.
On the student loan front, “seriously delinquent” loans are now at 11 percent as of third quarter last year, as compared to six percent in 2003, where the percentage represents the number of loans 90 days past due.
There’s roughly $1 trillion in student loans, according to Bloomberg, at a time when “[t]oday’s economy puts young graduates in a difficult position,” or so says the commissioner of the National Center for Education Statistics.
Student loans cannot necessarily be discharged in bankruptcy, which likely adds to the problem. It’s much more difficult to get rid of student loans, as opposed to credit card debt and medical bills, in your average bankruptcy proceeding.