Student loan delinquencies hit record high as employed graduates struggle to repay

Park, a 29-year-old dental technician, first took out student loans in her sophomore year of college, choosing a standard repayment plan that requires borrowers to set fixed grace and repayment periods in advance, regardless of when they find work. Some of her friends chose income-contingent loans, which only require repayment once graduates begin earning an income. Most have since landed jobs and are gradually paying down what they owe. But even low-interest debt can weigh heavily when starting salaries are slim. “As soon as your paycheck comes in, part of it is already set aside for student loan repayment,” she said. “But wages are so low that after rent and basic living expenses, there’s barely anything left.” There are others, she added, who are falling behind altogether as student debt is pushed down the list of financial priorities. “I know people who had to take out additional loans after graduation because they were short on money,” Park said. “Those loans carry much higher interest, so they pay those off first. Student loans tend to get pushed back because they f

Go to News Site