More than 9mn US student loan holders have missed at least one payment this year, as delinquencies in the $1.7tn market soar following the end of the Biden administration’s post-pandemic payments holiday.
The government’s Financial Stability Oversight Council said this week that student loans were “a notable exception” to low default rates on other loans held by American households.
While defaults on student loans have been historically higher than those for other forms of consumer credit, the share of balances now more than 30 days past their due date had doubled since the payments holiday began in early 2020, the FSOC said.
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