Student loan debt close to $1 trillion: Up 275%
Student loan debt hit topped $904 billion in 2012. The total loan debt amount is up from $241 billion from a year ago. During the economic downturn students continue to add student loans, while the average American has cut back on mortgages and credit cards. Americans are having issues with paying their student loans on time. 8.69% of student loans are in default, which is higher than mortgages, auto loans and home equity lines of credit. The delinquency rates don’t reflect loans are in deferment or grace periods, so the delinquency rates may actually be understated. One reason for the increase in student loans is the increasing cost of college. Another reason is the economic downturn, historically college attendance increases in times of economic turmoil.
For more information and details, see this CNN Money article.