A report by credit score analyst FICO shows growing concern for the stability of the student loan market, putting additional strain on the fragile economy. U.S. student loan debt now exceeds credit card debt, with an estimated $750 billion in outstanding student loans.More than two-thirds of bank risk professionals surveyed expected loan delinquencies to rise.
“Evidence is mounting that student loans could be the next trouble spot for lenders,” says Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. “A significant rise in defaults on student loans would impact lenders as well as taxpayers, who could be facing big losses due to these defaults. Our survey results underscore the ongoing challenges that millions of American households face as they try to cope with their debt during these uncertain times.”
A detailed report of FICO’s quarterly survey results is available at http://goo.gl/NCfqf.
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