Bill’s Commentary:
“Student loans are THE BIGGEST ASSET on the US balance sheet, and the credit quality is collapsing!”
“I Don’t Know What To Do!”: Borrowers Report Credit-Score Carnage As Student Loans Hit Reports
Last week we noted new report from the New York Federal Reserve, which showed that while Americans’ credit card debt is falling, credit scores are starting to decline due to an uptick in student loan delinquencies.
The NY Fed’s Center for Macroeconomic Data’s quarterly report reveals that overall household debt rose by $167 billion – with credit card debt declining by $29 billion. Yet, the delinquency rate for student loans surged from below 1% to nearly 7.7% after a pandemic-era pause on student loan payments was lifted in September 2023.
While the payments were resumed, policymakers extended a one-year ramp-up period that shielded borrowers’ missed payments from being reported to credit bureaus. This extension expired in October 2024, with delinquencies starting to hit the first quarter of 2025.
The latest from USA Watchdog –
BillHolter.com 
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