Delinquent debt tops $166 billion
Bloomberg today writes about the record $166.4 billion in US student debt that is more than 90 days behind in payments or in default.
This is a terrifying number for the long-term health of the US economy. US student debt can't be cast aside in personal bankruptcy. The debt is a serious drag on the credit and spending power of the people carrying it. Large arrears likely mean the people holding it can't buy a home and are unlikely to form families.
What's equally terrifying is that this rise has come at a positive time in the US economy, with unemployment at 4%. What happens in the next recession?