Student Loan Debt Creating Generation Of High-Risk Borrowers With Low Credit Scores

Parents Forum
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<p>“Lots of people graduate college with minimal credit histories. Repaying student loans was always a dependable way to build that history. But recent, rampant growth in student loan debt in the U.S. could slow that process for an entire age group.” …</p>

<p>[Student</a> Loan Debt Is Creating Generation Of High-Risk Borrowers With Low Credit Scores ? The Consumerist](<a href=“http://consumerist.com/2013/01/30/student-loan-debt-is-creating-generation-of-high-risk-borrowers-with-low-credit-scores/]Student”>Student Loan Debt Is Creating Generation Of High-Risk Borrowers With Low Credit Scores – Consumerist)</p>

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<p>WSJ’s version:</p>

<p>[Third</a> of Student-Loan Debt Belongs to Subprime Borrowers - WSJ.com](<a href=“Third of Student-Loan Debt Belongs to Subprime Borrowers - WSJ”>Third of Student-Loan Debt Belongs to Subprime Borrowers - WSJ)</p>

<p>“In the five years through last March, the portion of all student loans that were 90 days or more delinquent rose to 11.4% from 8.8%, while the average student- loan balance per borrower increased 30% to $23,829, TransUnion found.”</p>

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<p>I wonder if any studies have been done tying student loan delinquency to general economic climate? IMO $24K student loan balance is very workable, if you can find a job…</p>

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<p>Erin, part of the problem is also the staggering amount of debt held by kids who dropped out of college.</p>

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<p>Dave–can you find some stories with good news about kids…</p>

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<p>I don’t really believe most of these problems are from kids that actually got the 4 year degree. I think most of the problems are those that got that great freshmen package but were never able to get through the full four years. It left them with no degree and a large loan.</p>