College cost increases have exceeded the real inflation rate for decades. This sad fact has caught up with the student victims of this scam.
The total amount is twice the amount the U.S. Treasury paid to bail out the auto industry during the last recession.
Cross-posted from Zero Hedge
According to the Federal Reserve Bank of New York’s latest quarterly household debt report, student loan delinquencies surged last year, up to $166.4 billion in the fourth quarter. The report includes the total owed and the percentage of delinquent accounts past 90 days or in default.
The percentage of delinquent accounts figure has stood at 11% since about mid-2012, but the total amount of debt outstanding has increased to a stunning $1.46 trillion at the end of December 2018 – and unpaid student debt rose to its highest levels ever.
Delinquencies rose even as unemployment fell below 4%, telegraphing that the U.S. job market simply hasn’t generated the level of wage growth necessary to deal with the country’s growing debt load.
Bloomberg Intelligence interest-rate strategist…
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