The Federal Reserve Bank of New York recently released their quarterly report on household debt and credit. The report provides an in-depth examination of common components of household debt: mortgages, auto loans, credit card debt, and student loans.
Among the findings related to student loans:
- While aggregate household debt balances increased by 1.4% to $13.86 trillion, student loan balances decreased $8 billion to $1.48 trillion between the first and second quarters of 2019.
- This occurred even as mortgage, auto loan, and credit card balances increased over the same time period.
- In the second quarter of 2019, 9.9% of student loan debt transitioned to 90 or more days delinquent, up from 9.4% in the first quarter of 2019. A total of 10.8% of all student loan debt is either in default or 90 or more days delinquent.
- Of student loans, auto loans, credit card debt, and mortgages, student loans were most likely to transition into 30+ and 90+ day delinquency over the last quarter.
- Student loans are currently the largest source of debt for individuals aged 18-29.
- Student loans held by 40-49 year olds were most likely to transition to 90+ days delinquent during the last quarter.
