Student-loan delinquencies surged last year, hitting consecutive records of $166.3 billion in the third quarter and $166.4 billion in the fourth.
The total in arrears is about twice the amount the U.S. Treasury provided to bail out the auto industry during the last recession.
Loans at least 90 days past due are considered to be in “serious delinquency.’’ The age group transitioning into this category at the fastest pace is 40-to-49 year olds; that’s partly because of parents borrowing to pay their children’s expenses.
My personal opinion: Student debt will drag down the economy over the long term, as apparently both students and their parents are piling on debts.
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