Fed Household Debt and Credit Report Shows Student Debt Across States
As an increase in subsidized student loan interest rates from 3.4% to 6.8% is looming, the amount of student debt continues to increase.
The Federal Reserve Bank of New York's Household Debt and Credit Report for the first quarter of 2013 shows that 16.2% of Americans have student debt, with variation among states. The smallest incidence is in Hawaii at 11.5% and the largest in the District of Columbia, with 25.9%, followed by Minnesota, North Dakota, South Dakota, and Iowa. Although Northeast and Midwestern states have a higher share of consumers with student debt, southern states are more likely to have student debt more than 90 days delinquent. West Virginia has the highest delinquency rate at 17.8%, followed by Louisiana, Arkansas, Mississippi, and Florida.
In 2012 the percent of student loans more than 90 days delinquent increased from 8.7% to 11.7%, before falling slightly to 11.2% in the first quarter of 2013. Upcoming sequester cuts to federal workers could cause this number to increase further.