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Student loan debts are a serious problem in the United States. Debt levels have passed the one trillion dollar mark, and most of the debts end up in default. This is a concern for those who worry about the future of the US economy. Many of these young people are going to die in debt.
A total of 11.7 percent of all student loans are more than 90 days overdue. That is an increase from 8.5 percent since 2011, according to a study by the Federal Reserve. Delinquency rates can rise to as high as 30 percent in the next few years, according to the New York Fed.
This clearly shows that with balances swelling, minimum payments are becoming higher, and students are consequently missing payments. The states with the highest delinquency rates are West Virginia (17.8 percent), Louisiana (17.1 percent), and Arkansas (16.4 percent). Puerto Rico is in there too with 16.7 percent delinquency. Other states on the list with high levels of student loan problems are Florida, Texas, and Rhode Island.
South Dakota is the state with the lowest rate of student loan delinquency at 6.6 percent, although it is among the highest for percent of consumers in the state with student loan debt at 20.3 percent. Only 14.4 percent of West Virginia consumers have student loan debt.