Obama's $1.2 Trillion Student Loan Program Is Falling Apart

[Geee]

Investors Business Daily:

Debt Crisis: In less than five years, President Obama turned a relatively small, privately run, guaranteed student-loan program into a massive government-run disaster. What's his answer? More government, naturally.

 

The latest figures on the government-run loan program should be worrisome to anyone who cares about fiscal sanity and economic growth.

 

Delinquency rates on the feds' $1.2 trillion of student loans are sky high — worse than mortgage loans during the housing crisis.

 

The New York Fed reports that 11.5% of student loan debt was more than three months past due in Q2 of this year, which was up from Q1. By comparison, the 90-day delinquency rate on credit card debt is just 8.4%. The St. Louis Fed says that 27.3% of student loans that are currently being repaid are at least a month behind.

 

Now comes word from the Department of Education that 6.9 million people haven't made a student loan payment in more than 360 days, which is up 6% from the year before.