Great news! Loan delinquencies of all types are going down! It’s time to celebrate! Woohoo!
Wait a minute! Hold the phone! This is true but for one exception. Student loan delinquencies are on the rise.
As Larry and I uncovered in the Akcelerant Talks Collections Technology Yesterday, Today and Tomorrow webinar, student loan delinquencies are on the rise and are not looking to go away anytime soon.
CUToday wrote an article that reported, based on data from the Federal Reserve Bank of New York, that the increase of delinquencies from the first quarter of 2015 to the second is double more than any other form of consumer credit.
One bright spot is that the student loan delinquency rate at credit unions is about ten times lower than the overall delinquency rate! The overall trend may explain the recent talk in the political arena regarding helping students with their loans.