SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
To donate by check, phone, or other method, see our More Ways to Give page.
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
Gan Golan, dressed as the 'Master of Degrees,' holds a ball and chain representing his student debt during Occupy DC activities in Washington. (Photo: Jacquelyn Martin/AP)
Young people are more likely than ever to default on their students loans, according to a new report published Tuesday by the Fair Isaac Corp. (FICO Labs), signaling that the monstrous debt situation is worsening and will continue to plague our next generation of graduates.
"This situation is simply unsustainable and we're already suffering the consequences," said Andrew Jennings, head of FICO Labs. "When wage growth is slow and jobs are not as plentiful as they once were, it is impossible for individuals to continue taking out ever-larger student loans without greatly increasing the risk of default. There is no way around that harsh reality."
Calling the report the "latest red flag" the LA Times reports, "the student-loan delinquency rate in the last three years has risen to 15.1%, up from 12.4% from 2005 to 2007 [...] That's a nearly 22% increase."
At the same time, the average loan balances also continue to skyrocket indicating that school costs are growing even more out of reach for the average student. According to the report, "in 2005, the average U.S. student loan debt was $17,233. By 2012, it had ballooned to more than $27,253 - an increase of 58 percent in seven years."
Donald Trump’s attacks on democracy, justice, and a free press are escalating — putting everything we stand for at risk. We believe a better world is possible, but we can’t get there without your support. Common Dreams stands apart. We answer only to you — our readers, activists, and changemakers — not to billionaires or corporations. Our independence allows us to cover the vital stories that others won’t, spotlighting movements for peace, equality, and human rights. Right now, our work faces unprecedented challenges. Misinformation is spreading, journalists are under attack, and financial pressures are mounting. As a reader-supported, nonprofit newsroom, your support is crucial to keep this journalism alive. Whatever you can give — $10, $25, or $100 — helps us stay strong and responsive when the world needs us most. Together, we’ll continue to build the independent, courageous journalism our movement relies on. Thank you for being part of this community. |
Young people are more likely than ever to default on their students loans, according to a new report published Tuesday by the Fair Isaac Corp. (FICO Labs), signaling that the monstrous debt situation is worsening and will continue to plague our next generation of graduates.
"This situation is simply unsustainable and we're already suffering the consequences," said Andrew Jennings, head of FICO Labs. "When wage growth is slow and jobs are not as plentiful as they once were, it is impossible for individuals to continue taking out ever-larger student loans without greatly increasing the risk of default. There is no way around that harsh reality."
Calling the report the "latest red flag" the LA Times reports, "the student-loan delinquency rate in the last three years has risen to 15.1%, up from 12.4% from 2005 to 2007 [...] That's a nearly 22% increase."
At the same time, the average loan balances also continue to skyrocket indicating that school costs are growing even more out of reach for the average student. According to the report, "in 2005, the average U.S. student loan debt was $17,233. By 2012, it had ballooned to more than $27,253 - an increase of 58 percent in seven years."
Young people are more likely than ever to default on their students loans, according to a new report published Tuesday by the Fair Isaac Corp. (FICO Labs), signaling that the monstrous debt situation is worsening and will continue to plague our next generation of graduates.
"This situation is simply unsustainable and we're already suffering the consequences," said Andrew Jennings, head of FICO Labs. "When wage growth is slow and jobs are not as plentiful as they once were, it is impossible for individuals to continue taking out ever-larger student loans without greatly increasing the risk of default. There is no way around that harsh reality."
Calling the report the "latest red flag" the LA Times reports, "the student-loan delinquency rate in the last three years has risen to 15.1%, up from 12.4% from 2005 to 2007 [...] That's a nearly 22% increase."
At the same time, the average loan balances also continue to skyrocket indicating that school costs are growing even more out of reach for the average student. According to the report, "in 2005, the average U.S. student loan debt was $17,233. By 2012, it had ballooned to more than $27,253 - an increase of 58 percent in seven years."