Student loan delinquencies rising across the country but Utah is an exception
Oct 9, 2024, 10:26 PM | Updated: 10:30 pm
SALT LAKE CITY — The latest data on student loan delinquency is concerning for most of the country; the percentage of people who can’t pay their student loans on time has spiked. In 29 states, the delinquency rate on student loans has increased according to a study from personal finance website, WalletHub.
But here in Utah, the news is more comforting. The delinquency rate for graduates from the Beehive State actually went down over the past year. WalletHub’s data shows 2.94% drop in missed payments.
“This is one of those wonderful studies where debt is actually going down in some places,” said WalletHub editor Christie Matherne. “So I’m happy to report on it.”
I asked her to break down what it is that has Utah on the “happy” side of this story. She points to the overall health of our local economy.
“The states that are in more financial trouble and are all so in student loan trouble,” she said.
Many people are struggling to keep up on student loans, especially with the end of some Covid-era payment moratoriums. And when someone is underwater, they might choose skipping a student loan payment over skipping a payment on a high interest credit card.
“Student loan debt is, ONE, way lower interest. TWO, (it) tends to not have a lot of late payment fees and things like that,” Matherne said.
If you can’t make a student loan payment, or a scheduled payment on any debt, study after study shows that the worst thing you can do is just bury your head in the sand. For most people, if you call a lender before you miss a payment, they have ways to work with you to keep it from damaging your credit score or worse.”