A few months ago, we published a story about the student loan default crisis that has been taking a toll on the economy and lives of millions of people across the country.
Now, with a massive, looming default on the horizon, I want to ask the question: What do you really know about this crisis?
The data behind this article is from the U.S. Census Bureau.
The data comes from the Bureau of Labor Statistics, the Federal Reserve, the U-M College of Engineering, and the National Center for Education Statistics.
For each student, I’ve collected the following data points to help you understand how and why the current crisis is taking so much onerous financial toll on Americans: Average annual income.
Average amount owed.
The total amount owed by the student in default.
Income is the most important variable for understanding the current student loan crisis.
If you’ve ever been to a job interview, you know that employers have an obligation to pay you enough to meet your basic needs, but the same is true of student loans.
It’s not uncommon for someone who’s been paying off their loans for five years or more to be able to’t afford their rent or mortgage.
Student loan borrowers are more likely to have been struggling financially before the current default.
A new report from the Government Accountability Office found that more than two-thirds of student loan borrowers have been underwater on their student loans for at least six months.
That means that nearly two-fifths of the debtors have been in default at least once, and nearly half of them have had three or more defaults in a year.
Since the Great Recession, student loan defaults have increased dramatically.
According to the National Consumer Law Center, student debt is now the largest form of consumer debt in the U, at more than $1.6 trillion.
While most students would never know about these numbers, they can be a reminder of the sheer scale of the problem.
These data points will help you see how and when student loan delinquencies are taking a huge toll on borrowers, and why it is such a big problem.
If you have any questions about student loans, feel free to ask them in the comments section below or on Twitter using #studentloandebt.