US student loans are becoming a big problem

The folks over at Above the Law predict an imminent student loan default crisis as a result of high tuition costs and poor job prospects faced by graduates. “For many recent college graduates, default is inevitable” says this article. According to figures reported in the Huffington Post, outstanding student debt has risen by 25 per cent since the start of the financial crisis in 2008 – an increase from $440 billion to $550 billion – while every other major category of consumer debt fell during the same period. Meanwhile, the rate of delinquency on repayment of student loans continues to rise, while the delinquency rates for other kinds of debt declined or stayed flat.

US student loans are becoming a big problem abovethelaw.com Fri, Aug 19, 2011