Wage Stagnation and Student Debt Delinquencies

By: Tonya Mead, CFE, PI, MBA, MA Educational Psychology

An update to this article are three graphs from the U.S. Department of Education, Federal Student Aid Office which reports upon (in graph format) the trend in student debt defaults.

See here trends (graphs) in student financial aid defaults

Now to continue the original article, please continue reading…

The New York Federal Reserve, as reported by ZeroHedge (June, 15, 2017) indicates that as of the first quarter of 2017, total student loan debt was increasing the most and had the highest delinquency rate (around 10-11% from 2013 to 2017). To better associate delinquent loan balance and stagnant wages, see the chart provided by the Economic Policy Institute (Nominal Wage Tracker). It depicts wage growth hovering below 4% in most years. Both are provided below.

[pdf-embedder url=”https://ishareknowledge.com/wp-content/uploads/2017/06/Wages-Student-Debt-Percentages-Graph.pdf” title=”Wages-Student Debt Percentages Graph”]

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Tonya J. Mead, CFE, PI, MBA, MA, Certified K-12 Administrator and School Psychologist is author of Fraud in Education: Beyond the Wrong Answer and president of Shared Knowledge, LLC https://ishareknowledge.com