The Federal Reserve Bank of New York said Tuesday that the percentage of student loans 90 days or more overdue rose to 11.3 percent in the final three months of last year, up from 11.1 percent in the previous quarter. That's the highest in a year. Total student borrowing stands at $1.16 trillion, the most on record and 7.1 percent higher than 12 months earlier.
Previous research by the New York Fed has found that younger Americans with student loans are less likely to take out mortgages than those without student debt. That's a reversal from the pre-recession pattern.
Before the 2008-09 downturn, 30-year-olds with student debt were more likely to have mortgages because of their higher levels of education and higher potential incomes, the New York Fed says. Now they are slightly less likely to have mortgages than 30-year-olds without student debt.
“Student loan delinquencies and repayment problems appear to be reducing borrowers' ability to form their own households,” said Donghoon Lee, a research officer at the bank.
Americans overall are struggling with auto loans, the report showed, but are doing a better job keeping up with all their other debts.
Credit card balances 90 days or more overdue are down to 7.3 percent, from 7.5 percent in the previous quarter. Credit card delinquencies have fallen sharply since the Great Recession after reaching a peak of nearly 14 percent 4 ½ years ago. The current level is near the lowest since the New York Fed began tracking the data in 1999.
Delinquency rates for mortgages and home equity lines of credit fell in last year's fourth quarter from the previous three months. About 3.1 percent of mortgages are delinquent, down from nearly 9 percent in early 2010. That's still higher than the 1 percent to 1.5 percent that was typical before the recession.
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