An analysis of student loan borrower distress uncovers some new facts. First, cohort default rates appear to have been worsening over time, Second, defaults appear to be concentrated among the lowest-balance borrowers, who may not have completed their schooling, or may have earned credentials with lower payoffs than a four-year college degree. Finally, snapshots of delinquency and default rates miss the fact that many borrowers who are current today have had serious stress in the past.
Look for our next post on March 23.
February 19, 2015
February 18, 2015
The Student Loan Landscape
Student loans have recently attracted a huge amount of attention from the press and policymakers.
February 17, 2015
Just Released: Student Loan Delinquency Rate Defies Overall Downward Trend in Household Debt and Credit Report for Fourth Quarter 2014
Meta Brown, Andrew F. Haughwout, Donghoon Lee, Joelle Scally, and Wilbert van der Klaauw Today, the New York Fed released the Quarterly Report on Household Debt and Credit for the fourth quarter of 2014. The report is based on data from the New York Fed’s Consumer Credit Panel, a nationally representative sample drawn from anonymized […]
February 13, 2015
Historical Echoes: No Valentines Please, We’re British
It’s almost Valentine’s Day, and we’re not asking you questions or dispensing advice about it — that’s not (yet) our business.
February 11, 2015
Available for Sale? Understanding Bank Securities Portfolios
It’s natural to think of banks as intermediaries that take in deposits and use them to make loans to businesses and individuals.
February 9, 2015
Counterparty Risk in Material Supply Contracts
Forming long-term partnerships with customers and suppliers often creates a competitive advantage for firms because it permits resource sharing, eases financial constraints, and encourages investment in relationship-specific capital.
February 6, 2015
Highlights from the Global Research Forum on International Macroeconomics and Finance
International financial flows are a key feature of the global landscape and are relevant in many ways for central banks.
Posted at 7:00 am in Euro Area, Exchange Rates, Exports, International Economics, Regulation | Permalink | Comments (2)
February 4, 2015
Household Formation within the “Boomerang Generation”
Young Americans’ living arrangements have changed strikingly over the past fifteen years, with recent cohorts entering the housing market at much lower rates and lingering much longer in their parents’ households.
February 2, 2015
Bank Capital and Risk: Cautionary or Precautionary?
Do riskier banks have more capital? Banking companies with more equity capital are better protected against failure, all else equal, because they can absorb more losses before becoming insolvent.
January 16, 2015
Just Released: January Business Leaders Survey Indicates Regional Business Conditions Are Finally Back to Normal
The New York Fed’s January Business Leaders Survey indicates that the regional economy kicked off the New Year on a positive note.
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