While the market seems to be on a rocket ride this year, we may want to move back a little bit and take a look at the market over the past two years. Frequently we look at and are told about the market’s Year-to-Date return. In 2019, it looks fantastic. Who can complain about a 20% plus return in the …
Falling Behind
It should come as no surprise that delinquencies on student loans have been on the rise given the dramatic increase in student loan debt outstanding. As we can see from the graph below, the delinquency rate on student loan debt is now more than the rate on credit cards and mortgages and has been increasing since before the recession. A large portion …
And You Thought Credit Cards Were Bad?
In an effort to make college more affordable, the Federal Government first made it easier to get a loan. This program has been so incredibly popular, that we now have amassed over $1.2 trillion in student loan debt. Now that we have all these educated students, they should be that much smarter that they have higher incomes to pay back …
Chances of Defaulting Decreases with Larger Loans
It seems counterintuitive, but the less debt a student leaves school with, the greater risk they are of defaulting on their loan. The Consumer Credit Panel (CCP) teamed up with Equifax to create data for the Department of Education and this was their finding. Students who leave school with less than $5 thousand in student loans are 61% more likely …