Borrowers Behind on Student Loans Load Up on Other Types of Debt

New data shows student-loan borrowers in delinquency are more likely to also hold credit cards, auto loans and mortgages and to miss payments on those products, signaling increased cross-product consumer credit stress. This elevates credit risk for card issuers, auto lenders and mortgage servicers and could pressure consumer credit performance, though the article provides no specific percentages or bps impacts.

Analysis

New data shows student-loan borrowers in delinquency are more likely to also hold credit cards, auto loans and mortgages and to miss payments on those products, signaling increased cross-product consumer credit stress. This elevates credit risk for card issuers, auto lenders and mortgage servicers and could pressure consumer credit performance, though the article provides no specific percentages or bps impacts.