U.S. Student Loan Debt Sets Record, Doubling Since Recession

U.S. student loan debt outstanding reached a record $1.465 trillion last month and one particular set of borrowers is having a hard time paying back their loans, according to a Bloomberg analysis of student loan securitization data. This debt is raising fiscal risks.

Over 90% of student loans are guaranteed by the U.S. Department of Education, meaning that if a recession causes a rise in youth unemployment and triggers mass defaults, this contingent liability could prove burdensome for the U.S. government budget.

The record student debt level is more than double the $675 billion outstanding in June 2009 when the recession ended.

...Loans disbursed in 2012 have defaulted at a faster rate than any other loan cohort since the financial crisis.

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