"The New York Fed has put together a beautiful (read: ugly) map of student loan delinquencies, which nationally stand at 10.6% of loans ... Roll over the darker counties and you’ll see delinquency rates of more than 20%. Across the Southeast you can see a belt of bad student loans forming, much like the foreclosure belt that stretched across the Southwest."
"The problem here is not just that the student loan delinquency rates are rising. It’s that the numbers that are out there don’t seem to be giving the whole picture."
"Nonetheless, 8.8% of federally guaranteed student loans that entered repayment in 2009 were in default by the end of 2010. To put that in perspective, keep in mind that in this case “default” means nine months of missed payments. This is a big jump from the 5% or so of loans from the last decade that are in default, and it feels like a leading indicator—like the first batch of subprime mortgages to go bad. With higher-interest private loans, the numbers are going to be worse. That 8.8% number isn’t cumulative. It reflects the number of students who defaulted pretty much right away, the equivalent of the subprime borrowers who never made a payment."
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