March 2, 2015

Student Loan Delinquency Rate Continues to Climb

Since the Great Recession, 90+ day delinquency rates for most forms of household debt (e.g., credit card debt and auto loans) have declined, according to a recent report by the New York Fed. The exception to this trend is student loan debt, for which the 90+ day delinquency rate has steadily increased since 2003 and reached 11.3% in the fourth quarter of 2014. As the New York Fed notes, student loans now have the highest delinquency rate of any form of household credit.

The New York Fed also notes that student loans are now the largest category of household debt other than mortgages. Student loan debt now stands at approximately $1.2 trillion, more than triple the amount from 2004. As recently as 2009, student loans were the smallest category of nonmortgage debt.