With all of that job creation being claimed by the Obama administration and disseminated by mainstream media outlets as signs of a sustained recovery you’d think most college graduates would have no trouble keeping up with their bills.
But new data released by the Department of Education tell a different story.
According to the report as many as 33% of American college grads with student loan debt are now in delinquent status on their repayments.
About one-third of borrowers with federal student loans owned by the U.S. Department of Education are late on their payments, according to new federal data.
The figures, released by the Education Department on Thursday, are the first comprehensive look at the delinquency plaguing those who hold federal student loans. By the new metric, which the department has never used before, roughly 33 percent of borrowers were more than five days late on one of their federal student loans as of Dec. 31. (Since the department only released individual figures for its four largest contractors, rather than a total percentage, however, the actual figure may be a few percentage points higher or lower.)
Previous measures had put the delinquency rate much lower, masking the true amount of distress among borrowers trying to make good on their taxpayer-backed debts.
There are currently 41 million Americans who collectively have about $1.1 Trillion in loans outstanding. That means about 13.5 million Americans are currently delinquent on roughly $350 billion in student loan debt.
Several years ago we noted that as many as 85% of broke and jobless college graduates had no choice but to move back in with their parents after they graduated. That was in the midst of the worst recession since the 1930′s, but the latest figures from the Department of Education suggest things are just as bad, if not worse, even though the government says our unemployment rate has dropped from 10% to 5.5% in that same time period.
So where are the jobs? Well, according to a recent article from the Washington Post, officials at the Federal Reserve believe that our economy is at “full employment.”
But as Michael Snyder noted this month, there are at least 10 reasons that show why the unemployment numbers are a massive lie: