For many American households, life is looking better than it did just a few years ago: The pressure to pay up has receded.
The rate of serious loan delinquency for people with mortgages, credit cards or auto loans has dropped in recent quarters, according to data released recently by the Federal Reserve Bank of New York.
“The overall picture points to continued signs of healing in consumer credit markets,” the report concludes.
Yet there is one very striking exception.
More people are taking out student loans, while at the same time the people who have taken out student loans appear to be struggling even more than they were during the recession.
The amount of student loan debt has tripled since 2004 and stands today at nearly $1 trillion.
“Student debt is the only kind of household debt that continued to rise through the Great Recession and has now the second largest balance after mortgage debt,” the report notes.