Student Loan Debt Far Outpaces Credit Card Debt
Student loan debt is on the rise, and Americans now owe $1.31 trillion, according to the Federal Reserve Bank of New York. This is nearly double the $779 billion that consumers owe in credit card debt.
Of the 44 million Americans who have student loan debt, the average amount owed is $37,172. Meanwhile, the average annual wage in the United States was only $48,098 in 2015, which means most people are struggling to make their student loan payments and cover other debts, according to the Social Security administration.
Due to these financial struggles, $31 billion in student loan debt is “seriously delinquent,” which are payments that are late by at least 90 days. An additional $32.6 billion is “newly delinquent,” which means it is between 30 and 89 days past due.
Over two million student loan holders owe over $100,000, and 415,000 owe more than $200,000. Most people who have student loan debt owe far less, as 30 million owe between $1 and $25,000.
The New York’s Fed report shows student loan debt is not the only serious financial concern. The collective household debt in the United States has reached $12.58 trillion. At the current rate of growth, we could surpass the 2008 peak of $12.68 trillion later this year. Mortgages are the largest component of household debt, but they are not rising as quickly as other forms of debt.