Consumer debt delinquency is rising
1 month, 1 week ago

Consumer debt delinquency is rising

Salon  

Consumer debt delinquency rose in the fourth quarter to its highest level in almost five years, suggesting financial struggles persist across the U.S. amid higher inflation and interest rates, Bloomberg reported. Delinquent debt refers to financial obligations — such as loans or credit card payments — that have been delayed past their due dates, which may in turn affect credit scores. According to a Federal Reserve Bank of New York report, roughly 3.6% of debt was delinquent in the fourth quarter of 2024, with total household debt rising to a record $18 trillion. Student loan balances also grew by $9 billion last quarter, but the pause on student loan repayments during the pandemic also postponed missed payment reports to credit bureaus.

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History of this topic

US Consumer Borrowing Growth Slows After Near-Record Surge
2 weeks, 4 days ago

US Consumer Borrowing Growth Slows After Near-Record Surge

Live Mint  

US consumers dialed back the pace of borrowing in February after a near-record increase a month earlier. Data earlier Friday showed the labor market softened last month as unemployment rose, setting a weak backdrop just as President Donald Trump’s policies raise concerns about the broader economy. Separate government showed last week US consumers unexpectedly pulled back on spending at the …

Could federal upheaval erase student loan debt? Not so fast
3 weeks, 5 days ago

Could federal upheaval erase student loan debt? Not so fast

Salon  

For student loan borrowers, the latest social media rumor sounds alluring: that the Elon Musk-led dismantling of the Department of Education and ensuing breaches of private data could cancel the debt they owe. The viral videos highlight a period of financial insecurity for 43 million borrowers who owe about about $1.64 trillion in outstanding federal student loans, according to U.S. …

Three-quarters of university graduates have student debts
3 months, 1 week ago

Three-quarters of university graduates have student debts

NL Times  

Almost three-quarters of all people who have completed a university-level education within four years have student debts. Just over half of the students who followed an HBO bachelor's degree have student debt, and only one in five secondary vocational students are in debt. They have to pay an average of 12,500 euros, former HBO students still have to pay 6,300 …

Credit card delinquencies are rising. Here’s what to do if you’re at risk
9 months, 2 weeks ago

Credit card delinquencies are rising. Here’s what to do if you’re at risk

Associated Press  

NEW YORK — Seriously overdue credit card debt is at the highest level in more than a decade, and people 35 and under are struggling more than other age groups to pay their bills. The share of credit card debt that’s severely delinquent, defined as being more than 90 days overdue, rose to 10.7% during the first quarter of 2024, …

Credit card delinquencies are rising. Here's what to do if you're at risk
9 months, 2 weeks ago

Credit card delinquencies are rising. Here's what to do if you're at risk

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Seriously overdue credit card debt …

Borrowers, especially the young, struggle with credit card debt in potentially bad sign for economy
10 months ago

Borrowers, especially the young, struggle with credit card debt in potentially bad sign for economy

Associated Press  

NEW YORK — Consumers are increasingly struggling to pay their credit card bills, raising concerns about severe delinquencies spiraling and sapping consumer spending. The share of credit card debt that’s more than 90 days overdue rose to 10.7% during the first quarter, a 12-year high, according to the Federal Reserve Bank of New York’s report on first-quarter household debt. “The …

More Americans are falling behind on credit card bills
10 months, 1 week ago

More Americans are falling behind on credit card bills

NPR  

More Americans are falling behind on credit card bills Enlarge this image toggle caption Justin Sullivan/Getty Images Justin Sullivan/Getty Images More Americans are falling behind on their credit card bills. About 8.9% of credit card balances fell into delinquency over the last year, according to the Federal Reserve Bank of New York — a sign that a growing number of …

The case for no candidate like Biden ever again
1 year ago

The case for no candidate like Biden ever again

Al Jazeera  

The past three years of United States President Joe Biden’s administration have been perceived as an amazing success and dismal failure, depending on who you ask. That was due to amendments to the Higher Education Act that Biden had also supported and that expanded student loans as the primary method to pay for tuition for first-generation students from families living …

Americans have record-high credit card debts totalling $1.05 trillion amid historic inflation
1 year, 1 month ago

Americans have record-high credit card debts totalling $1.05 trillion amid historic inflation

Hindustan Times  

Americans started 2024 on a hopeful note, but it seems a chunk of spending landed on credit cards. The average balance per cardholder hit a record high, reaching $6,360, contributing to a total credit card balance of $1.05 trillion in the fourth quarter. According to a report by the Federal Reserve Bank of New York, credit card debt in the …

Borrowers are reassessing their budgets as student loan payments resume after pandemic pause
1 year, 5 months ago

Borrowers are reassessing their budgets as student loan payments resume after pandemic pause

Associated Press  

NEW YORK — Millions of Americans must start repaying their federal student loans again in October, with monthly payments averaging hundreds of dollars. “If they were forgiven out of the blue, I’d be ecstatic.” The Supreme Court in July rejected a plan by President Joe Biden’s administration to wipe away $400 billion in student loan debt. On an earnings call …

Borrowers are reassessing their budgets as student loan payments resume after pandemic pause
1 year, 5 months ago

Borrowers are reassessing their budgets as student loan payments resume after pandemic pause

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. “If they were forgiven out of the blue, I'd …

Explained | The U.S. student loan crisis and Joe Biden’s new cancellation plan
1 year, 8 months ago

Explained | The U.S. student loan crisis and Joe Biden’s new cancellation plan

The Hindu  

The story so far: United States President Joe Biden has already released a new plan to cancel billions in student loan debt after the conservative majority Supreme Court of the U.S. in a 6-3 decision on June 30 blocked his ambitious plan to cancel $430 billion in debt. The president announced on the day of the Court ruling that the …

Retailers, beware: Resumption of student loan payments could lead some buyers to pull back
1 year, 8 months ago

Retailers, beware: Resumption of student loan payments could lead some buyers to pull back

Associated Press  

WASHINGTON — The reprieve is over. Even if all that won’t be enough to weaken overall economic growth, the shift in spending by many young adults could inject further uncertainty into an economy already beset by uncertainties, from whether the Fed will manage to tame inflation and halt its interest rate hikes to whether a recession is destined to strike …

Supreme Court’s student loan ruling dealt Biden a setback. Here’s his new plan
1 year, 8 months ago

Supreme Court’s student loan ruling dealt Biden a setback. Here’s his new plan

LA Times  

When President Biden announced his plan to cancel up to $20,000 in federal student loans for some borrowers last August, he framed it as part of a multipronged approach to ease the burden on loan holders and prevent a wave of defaults. The Biden administration now faces an unprecedented task: helping tens of millions of borrowers make payments in a …

Crushed student loan borrowers are skipping meals, moving in with parents, panicking over money
1 year, 8 months ago

Crushed student loan borrowers are skipping meals, moving in with parents, panicking over money

LA Times  

D’Aungilique Jackson of Fresno holds a “Cancel Student Debt” sign outside the U.S. Supreme Court after justices stuck down President Biden’s student debt relief program in Washington, D.C. Mimi Hoang rejoiced when President Biden announced plans last year to cancel thousands of dollars in student debt. As she faced the prospect of tripling her loan debt by staying at Southern …

Here’s when your student loan payments will start again
1 year, 8 months ago

Here’s when your student loan payments will start again

CNN  

Washington CNN — After a more than three-year pause, borrowers will have to restart paying their federal student loan bills in October. The National Association of Student Financial Aid Administrators warns that borrowers may need to have patience when contacting their student loan servicer, which might be overwhelmed with a high volume of inquiries at this time. Some borrowers could …

What the Supreme Court's rejection of student loan relief means for borrowers
1 year, 8 months ago

What the Supreme Court's rejection of student loan relief means for borrowers

NPR  

What the Supreme Court's rejection of student loan relief means for borrowers Enlarge this image María Hergueta for NPR María Hergueta for NPR In one of the most anticipated decisions of its current term, the U.S. Supreme Court has struck down President Biden's sweeping plan to discharge some or all federal student loan debt for tens of millions of Americans. …

Inflation is doing a crab walk and Fed officials fear its pinch
2 years, 1 month ago

Inflation is doing a crab walk and Fed officials fear its pinch

CNN  

A version of this story first appeared in CNN Business’ Before the Bell newsletter. Researchers at the Federal Reserve Bank of New York have issued a dire warning: If President Joe Biden’s student loan forgiveness plan doesn’t come to fruition, the US could face another credit crisis. An analysis by the New York Fed found that roughly $441 billion of …

After cancellation, Dems look to reduce future student debt
2 years, 6 months ago

After cancellation, Dems look to reduce future student debt

Associated Press  

WASHINGTON — Building on President Joe Biden’s student debt cancellation plan, House Democrats on Thursday proposed new legislation that would increase federal student aid, lower interest rates on loans and take other steps to make college more affordable. The bill is being pushed as a complement to Biden’s plan, which promises to wipe away student debt for millions of Americans …

Biden's Debt Relief Is The Biggest Break For Student Debtors In Decades
2 years, 7 months ago

Biden's Debt Relief Is The Biggest Break For Student Debtors In Decades

Huff Post  

LOADING ERROR LOADING President Joe Biden’s announcement Wednesday that the federal government would cancel a big chunk of student loan debt represents the biggest break student debtors have had in decades. Under the student loan cancellation Biden announced Wednesday, the federal government will cancel as much as $20,000 in debt for current or former student borrowers who also received need-based …

Nearly $4 billion in federal student loan debt canceled for former ITT Tech students
2 years, 7 months ago

Nearly $4 billion in federal student loan debt canceled for former ITT Tech students

LA Times  

The ITT Technical Institute campus in Rancho Cordova, Calif., is closed in September 2016 after the school’s shutdown. Hundreds of thousands of students who took out federal student loans to attend ITT Tech as far back as 2005 will automatically have that debt canceled. Nearly $4 billion in student loan debt will be canceled for 208,000 former students of for-profit …

White House to extend student loan pause through August
2 years, 11 months ago

White House to extend student loan pause through August

Associated Press  

WASHINGTON — The Biden administration plans to freeze federal student loan payments through Aug. 31, extending a moratorium that has allowed millions of Americans to postpone payments during the coronavirus pandemic, according to an administration official familiar with the White House’s decision-making. “Borrowers are struggling with rising costs, struggling to get their feet back under them after public health and …

Here's What I Wish Someone Told Me Before I Racked Up $180,000 In Student Loan Debt
3 years, 1 month ago

Here's What I Wish Someone Told Me Before I Racked Up $180,000 In Student Loan Debt

Huff Post  

"We ask 17-year-olds to decide to spend huge sums of money that they don’t have without an understanding of what they’re getting in return or giving them any examples of the burden to which they’re attaching their signatures." First, the ability to choose to be a “starving artist” is most often reserved for those who are wealthy and either don’t …

Plastic fantastic: Americans are racking up credit card debt
3 years, 1 month ago

Plastic fantastic: Americans are racking up credit card debt

Al Jazeera  

United States credit-card balances increased every quarter in 2021, with the fourth-quarter gain the largest in figures dating back 22 years, data shows. Credit-card balances increased every quarter in 2021 to end the year at $856 billion, the Federal Reserve Bank of New York said Tuesday. New mortgages reached a historic high last year and auto loans soared, reflecting steep …

What would it take to solve the student debt crisis?
3 years, 9 months ago

What would it take to solve the student debt crisis?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. But experts say no single policy — not even …

Debt in the time of pandemic
4 years, 1 month ago

Debt in the time of pandemic

Al Jazeera  

Alongside the pandemic and its impacts on the economy, the US is also facing a growing debt crisis. According to a survey by creditcards.com, nearly half of US adults, or about 120 million people, had credit card debt in May 2020, just a few months into the pandemic. In November 2020, just weeks after the presidential election, 238 community, civil …

It is time to cancel student debt and make higher education free
4 years, 11 months ago

It is time to cancel student debt and make higher education free

Al Jazeera  

The US government needs to start investing in the American people, not in bailing out banks. Making public colleges, universities, and trade schools free would also help those hit hard by the crisis rebuild their futures and prevent another student debt crisis from emerging. Student debt also disproportionately burdens students of colour, whose communities have historically experienced many barriers to …

It is time to cancel student debt and make higher education free
4 years, 11 months ago

It is time to cancel student debt and make higher education free

Al Jazeera  

The US government needs to start investing in the American people, not in bailing out banks. Making public colleges, universities, and trade schools free would also help those hit hard by the crisis rebuild their futures and prevent another student debt crisis from emerging. Student debt also disproportionately burdens students of colour, whose communities have historically experienced many barriers to …

Tax Credits, Free College And Other Proposals That Could Affect Your Wallet Next Year
5 years, 10 months ago

Tax Credits, Free College And Other Proposals That Could Affect Your Wallet Next Year

Huff Post  

The Washington Post via Getty Images It’s hard to believe that we’re nearing another presidential election. They’re calling the new piece of legislation the “Loan Shark Prevention Act,” which, if passed, would cap interest rates at 15 percent. He’s also proposed forgiving existing debt, as has Sen. Elizabeth Warren with a recently announced plan to eliminate $50,000 in student loan …

Heavy Student Loan Debt Forces Many Millennials To Delay Buying Homes
6 years, 1 month ago

Heavy Student Loan Debt Forces Many Millennials To Delay Buying Homes

NPR  

Heavy Student Loan Debt Forces Many Millennials To Delay Buying Homes Enlarge this image Jon Marchione for NPR Jon Marchione for NPR Student loan debt in the United States has more than doubled over the past decade to about $1.5 trillion, and the Federal Reserve now estimates that it is cutting into millennials' ability to buy homes. "Student loan debt …

Student Loan Debt Has Nearly Tripled : NPR Ed : NPR
7 years, 11 months ago

Student Loan Debt Has Nearly Tripled : NPR Ed : NPR

NPR  

A New Look At The Lasting Consequences Of Student Debt Enlarge this image Jon Marchione for NPR Jon Marchione for NPR Recent college graduates who borrow are leaving school with an average of $34,000 in student loans. For people aged 30 to 36, the analysis shows having any student debt significantly hurts your chances of buying a home, compared to …

WHY IT MATTERS: Student Debt
8 years, 5 months ago

WHY IT MATTERS: Student Debt

Associated Press  

WASHINGTON — THE ISSUE: More Americans are getting buried by student debt — causing delays in home ownership, limiting how much people can save and leaving taxpayers at risk as many loans go unpaid. Out of the 43 million Americans with student debt, roughly 16 percent are in long-term default —a potential hit in excess of $100 billion that taxpayers …

More than 40 per cent of Americans are not repaying billions in student loans
8 years, 11 months ago

More than 40 per cent of Americans are not repaying billions in student loans

The Independent  

The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US Your briefing on the latest headlines from across the US SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Nearly half of Americans …

5 Ideas To Ease The Burden Of Student Loans
9 years, 9 months ago

5 Ideas To Ease The Burden Of Student Loans

NPR  

5 Ideas To Ease The Burden Of Student Loans Enlarge this image toggle caption Christine Armario/AP Christine Armario/AP The total outstanding balance of federal student loans: $1.3 trillion. Sponsor Message "This was not a result of a conscious top-down decision, in the way that the U.K. or Australia or New Zealand changed from a tuition-free system to one heavily financed …

My crushing student debt
11 years, 10 months ago

My crushing student debt

Salon  

It all began in August 2001, when I decided to participate in one of the great annual migrations known to man: alongside millions of fellow eighteen-year-old Americans, I had graduated from high school and was going to college. In high school, if someone asked me what my “plans” were, I’d click into brainwashed robot mode: my body would become rigid, …

Student Debt May Hurt Economy As Record Levels Dampen Other Loans
11 years, 11 months ago

Student Debt May Hurt Economy As Record Levels Dampen Other Loans

Huff Post  

BOSTON -- The overhang of student debt on young workers may inhibit consumption and future borrowing, researchers at the Federal Reserve Bank of New York warn, potentially imperiling the economic recovery for years to come. In a new study, New York Fed researchers said Wednesday that younger workers with student debt are less likely than their unburdened peers to have …

High Student Debt Poses Risk To Growth, Federal Reserve Says
11 years, 11 months ago

High Student Debt Poses Risk To Growth, Federal Reserve Says

Huff Post  

Policy makers on the Federal Reserve’s interest-rate setting panel have for the first time identified high student debt burdens as a risk to economic growth, adding to a growing chorus of government officials concerned about households’ education borrowings. According to newly released minutes from the March meeting, some members of the panel mentioned “the high level of student debt” as …

Student Loan Rates Boost Government Profit As Debt Damps Economy
11 years, 11 months ago

Student Loan Rates Boost Government Profit As Debt Damps Economy

Huff Post  

BOSTON -- Millions of student borrowers are paying record relative interest rates on their government loans, lining Department of Education coffers and stoking fears that student borrowing costs and debt levels are restraining the shaky economic recovery. All told, over the last five fiscal years, the Education Department has generated $101.8 billion in profit from student borrowers, thanks to low …

Number of students filing for bankruptcy triples
21 years, 1 month ago

Number of students filing for bankruptcy triples

The Independent  

The best of Voices delivered to your inbox every week - from controversial columns to expert analysis Sign up for our free weekly Voices newsletter for expert opinion and columns Sign up to our free weekly Voices newsletter SIGN UP I would like to be emailed about offers, events and updates from The Independent. A number of them are believed …

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