MINNEAPOLIS – A new quarterly survey of risk managers at U.S. banks found more than 60% are forecasting student loan debt delinquencies will increase in the next six months.
The survey of 215 risk managers, conducted by credit risk analysis firm FICO, revealed worries over student loan debt has been an ongoing concern among risk managers at banks, with more than half consistently predicting delinquencies will increase. Just 13% expect delinquencies to decrease.
The survey found bankers to be much more optimistic about Americans’ ability to pay off other types of debt. About two-thirds of those surveyed said they expect credit card delinquencies to stay the same or shrink over the next six months. About three-fourths were expecting delinquency rates for car loans and residential mortgages to stay flat or go down.
Earlier, the Federal Reserve reported consumer credit for categories including car and student loans rose by nearly $14 billion in August from July. In total, U.S. consumer credit rose by more than $18 billion in August.