In the United States, total student loan debt has skyrocketed to $1.3 trillion. The big caveat inside this astronomical figure is that a large percentage of that money is not being paid back.
According to a new chart from the Visual Capitalist, the delinquency rate of student loan debt has hit double digits, and is now higher than the credit card, auto loan and mortgage delinquency rates.
Using data by the Federal Reserve Bank of New York, the percent of 90-plus day delinquent loans stands at 11 percent as of the first quarter of 2016. This has been steadily climbing since 2012 when it was at eight percent.
Meanwhile, everything else is gradually coming down or has remained flat.
The website also cited billionaire investor Peter Thiel, who said this generation’s higher education is in a bubble.
“If a college degree always means higher wages, then everyone should get a college degree. But how can everyone win a zero-sum tournament? No single path can work for everyone, and the promise of such an easy path is a sign of a bubble.”
What a waste of money, too. Many graduates can’t have families, many graduates regret borrowing these obscene amounts of money and many graduates can’t buy a home. Of course, many of these same graduates can’t find jobs in their respective fields. Despite the terrible results, the answer to all of our economic ails is always higher education.
Leave a Comment