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Turning Point for Student Loans - Inside Higher Ed

The New York Fed this week presented an unsettling picture of how student loans stack up to other household debt.   Defaulted student loans have surpassed all other types of household debt classified as "severely derogatory," including mortgage and credit card debt, according to a report from New York Fed researchers.   Fed researchers defined severely derogatory debt as any kind of delinquent loan combined with a repossession, foreclosure, or charge off. The proportion of debt falling into that category in U.S. households has stayed fairly consistent for the past four years. But defaulted student loans now make up 35 percent of that debt.

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