With 19-29 year olds now saddled more than $1 trillion in debt, with the majority comprised of student loans, policymakers are struggling to find answers on how to ensure the generation continues to drive economic growth. Since 2009, student debt has grown 102% - far outstripping mortgage debt growth of 3.2%.
Americans tend to experience their peak debt during mid-life years and debt should decline as individuals age. A more striking piece of data is that the implied debt that is 90-plus days delinquent for student loans dwarfs other loan type categories. Once a person is the subject of third party collections from their student loan delinquencies, their credit profile will be hindered for years. Missing a student loan repayment can also harm an individuals chances of getting a mortgage. The implied debt in arrears from student loans represents about 40 percent of the total debt balance 90-plus days delinquent.