(Bloomberg) -- Outstanding student loan debt increased by $37 billion in the third quarter and stood at $1.44 trillion as of September 30, 2018, according to newly released data from the Federal Reserve Bank of New York.
Key Insights
- 11.5% of student debt was 90+ days delinquent or in default in last quarter, a substantial increase from the second quarter
- A 2012 report noted the delinquency rates for student loans are likely to be understated because about half of these loans are in deferment, in grace periods or in forbearance. This implies that delinquency rates are roughly twice as high among loans counted in the repayment cycle -- surpassing $300 billion.
To contact the reporter on this story: Alex Tanzi in Washington at atanzi@bloomberg.net
To contact the editor responsible for this story: Chris Middleton at cmiddleton2@bloomberg.net
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