A new report from FICO Labs states U.S. student loan delinquency rates climbed by nearly 22% in thepast five years.
|The delinquency rate on student loans originated from 2005 to2007 is 12.4%, while the delinquency rate on student loansoriginated from 2010 to 2012 is 15.1%, FICO said.
|The research, which FICO said was based on an examination of 10 million consumercredit files in 2012, also revealed the average amount of U.S.student loan debt increased by 58% from 2005 to 2012–$17,233 to$27,253–while average U.S. credit card and auto loan debt amountsdeclined.
|Additionally, in a quarterly survey conducted by FICO inDecember 2012, nearly 60% of responding bank risk managers saidthey expected student loan delinquencies to increase over the nextsix months and delinquencies on all other types of consumer loansto decrease over the next six months.
|“This situation is simply unsustainable and we're alreadysuffering the consequences,” said Andrew Jennings, chief analyticsofficer for FICO and head of FICO Labs.
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