NYT: Student Loan Delinquency is Rising

Student Loan Debt Rising, and Often Not Being Paid Back

NYT image from article

So while all other debt is going in a general downward motion, student loan debt is increasing and delinquencies are rising.

Seems odd. But the author notes that during the crisis, a lot of the non-student loan debt had been erased through bank write off vs being paid off. But there's still a strong trend of loans being paid down after the crisis. I understand the lower rate and refinancing the mortgage, HE revolving and possibly the auto loan which results in extra money that can go toward the credit card bill but why not pay down the student loan as well as the credit card? Does it not seem as important?

It scares me that most Americans do not know the many options available to them for student loans. My favorite being the income based repayment system. Pay only 15% of your discretionary income for 25 years and then rest of the loan is forgiven by the government (you will have to pay taxes on that amount though). It's very easy to sign up for this program and you can prepay if you just want it for security reasons (in case you lose your job or what not). Some people are waiting since it appears the Obama administration might change it to only 10% of your income and only 20 years!

Income Based Repayment