Panelists Caroline Downey and Cage Sawrs are discussing how student loan crime will reach record maximums, while the increasing number of current and future students does not believe that the degree is worth the price of the “bottom line”.
New York Federal Reserve Bank on Tuesday reported a significant increase in the number of Delinquent student loans After the end of the moratorium on the repayment of the student loan and the resumption of reporting crimes to credit agencies.
Thehe New York Fed The Microeconomic Data Center has released its three -month debt and household loan report, which found that the number of student loans passing into serious delinction has increased “sharply” in the second quarter.
From the second quarter of 2020 to the fourth quarter of 2024, the missed federal payments for a student loan were not reported to credit bureaus and with the renewal of the reporting, crime rates have increased.
The New York Fed found that in the second Quatern of 2025, a total of 10.2% of the total student loan debt was 90 or more Delinkvent, a figure slightly below the levels before the pandemic, which is approximately 12% since 2013, while these percentages were directed to 2% or lower during the pandemic pandemic.
Student loans criminals have increased since the repayment break has expired. (Istock / Istock)
The total amount of unpaid Student Loan Debt It was $ 1.64 trillion in the second quarter of 2025 after growing by $ 7 billion in the quarter.
In addition, the share of debt for a student loan entering serious crime, considered 90 days or more, jumped to 12.9% at the end of June, compared to 8% in March and more Preliminary trends which were about 9-10% from 2012 to the beginning of 2020, when the moratorium initially came into force.
Student Crime Loan Tank Credit Results for millions of borrowers: How to recover
The Biden administration extended the repayment pause as it unsuccessfully tried to cancel the debt of the student loan through enforcement actions. (Kent Nishimura / Los Angeles Times through Getty Images / Getty Images)
Among the different age groups, the transition to serious crime It was the highest of the borrowers 50 and up, which was approximately 18%.
Borrowers in the age range of 40 to 49 were the next highest at nearly 14%, while those between the ages of 30 and 39 were slightly higher than 11%. The youngest group of borrowers in the age range 18-29 had the lowest degree of transition to serious crime at more than 8%.
460k student loan borrowers have refused a preservation plan, face higher payments: Report
President Donald Trump has launched the payback pause at the beginning of Kovid’s pandemic, which President Joe Biden has continued for a large part of his term as a post. (Saul Loeb/Pool/Getty Images/Getty Images)
New York Fed report also notes that Credit card debt It increased by $ 27 billion in the second quarter to $ 1.21 trillion, while the borrowing of car loans increased by $ 13 billion over the same period to $ 1.66 trillion.
Part of the increase in automatic borrowing was tied to a step when buying cars to outstrip the rates associated with tariffs, the bank researchers said in a publication.
Get Fox Business on the go by clicking here
“Despite economic uncertainty, it seems that Americans are being stable,” says Matt Schultz, a chief analyst for Lendingtree users. “Debt and crime have slightly tossed, but overall it was a typical second quarter, except when it comes to student loans. The impact of the federal restart of repayment continues to grow and is significant.”
Reuters contributed to this report.
2025-08-06 19:49:42
https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/07/0/0/student-loan-debt-piggy-bank.jpg?ve=1&tl=1