All of a Sudden Students Have Stopped Paying Their Loans, Again—Why?

After declining for 6 months, delinquency rates have shot back up. 
More

The first six months of 2013 brought us a small measure of good news about student loans: the delinquency rate, while still far too high for comfort, was falling.

Sadly, that's no longer the case. As shown on the graph below, the Federal Reserve Bank of New York reports that 11.8% of outstanding loan balances were 90 days or more past due by the end of September, a new post-recession high.  

This could just be a temporary blip. Or, it could be a sign that the problems with student lending are still going to linger with us even while the economy heals, as students who graduated (or dropped out) into the anemic post-recession economy fall behind on their debt. In any event, it's disconcerting, not to mention a reminder that Congress might want to consider stepping in and doing something sooner rather than later. 

Jump to comments
Presented by

Jordan Weissmann is a senior associate editor at The Atlantic.

Get Today's Top Stories in Your Inbox (preview)

Tracing Sriracha's Origin to a Seaside Town in Thailand

Ever wonder how the wildly popular hot sauce got its name? It all started in Si Racha.


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Where the Wild Things Go

A government facility outside of Denver houses more than a million products of the illegal wildlife trade, from tigers and bears to bald eagles.

Video

Adults Need Playtime Too

When was the last time you played your favorite childhood game?

Video

Is Wine Healthy?

James Hamblin prepares to impress his date with knowledge about the health benefits of wine.

Video

The World's Largest Balloon Festival

Nine days, more than 700 balloons, and a whole lot of hot air

Writers

Up
Down

More in Business

Just In