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)

What Is the Greatest Story Ever Told?

A panel of storytellers share their favorite tales, from the Bible to Charlotte's Web.


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

The Death of Film

You'll never hear the whirring sound of a projector again.

Video

How to Hunt With Poison Darts

A Borneo hunter explains one of his tribe's oldest customs: the art of the blowpipe

Video

A Delightful, Pixar-Inspired Cartoon

An action figure and his reluctant sidekick trek across a kitchen in search of treasure.

Video

I Am an Undocumented Immigrant

"I look like a typical young American."

Video

Why Did I Study Physics?

Using hand-drawn cartoons to explain an academic passion

Writers

Up
Down

More in Business

Just In