Studen loan deliquencies surge to 35% for recent grads

[davidn3600]

I am 23 and, thankfully, don’t have any student loans. I got a scholarship in college, and because of this my parents agreed to help pay for my masters degree, but I count myself among a very small proportion of recent graduates that isn’t drowning in student debt. So much debt, in fact, that 35 percent of those of us under age 30 simply won’t—or can’t—make their loan payments anymore, according to a new report from the Federal Reserve Bank of New York.

Since 2004, educational debt has nearly tripled, to $966 billion, surpassing credit-card debt, auto loans, and home equity lines of credit to take second place behind mortgage debt, with a total balance moving steadily toward $1 trillion. Even through the recession, student debt showed no signs of stopping.

“Student loan debt is the only kind of household debt that continued to rise during the Great Recession and has now the second-largest balance after mortgage debt,” write Donghoon Lee, an economist at the New York Fed, according to Bloomberg News. “With delinquent student debt, mortgage origination is very difficult. The mortgage origination gap across the size of student debt has declined between 2005 and 2012.”

http://www.businessweek.com/articles/2013-03-01/for-recent-grads-student-loan-delinquencies-reach-35-percent?campaign_id=yhoo

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[OhioChick]

1. Sort of hard to repay that student loan debt when there's not enough jobs out there n/t

[HiPointDem]

2. how many know that increasing the percent of students financing college w/ loans = World Bank

plan?

not only for the US, but globally?