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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Natasha Chilingerian
Natasha Chilingerian has been immersed in the credit union industry for over a decade. She first joined CU Times in 2011 as a freelance writer, and following a two-year hiatus from 2013-2015, during which time she served as a communications specialist for Xceed Financial Credit Union (now Kinecta Federal Credit Union), she re-joined the CU Times team full-time as managing editor. She was promoted to executive editor in 2019. In the earlier days of her career, Chilingerian focused on news and lifestyle journalism, serving as a writer and editor for numerous regional publications in Oregon, Louisiana, South Carolina and the San Francisco Bay Area. In addition, she holds experience in marketing copywriting for companies in the finance and technology space. At CU Times, she covers People and Community news, cybersecurity, fintech partnerships, marketing, workplace culture, leadership, DEI, branch strategies, digital banking and more. She currently works remotely and splits her time between Southern California and Portland, Ore.
