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Post Pandemic Student Loan Delinquency is Bad
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Post Pandemic Student Loan Delinquency is Bad
Apollo Global Management’s latest report flags a growing risk tied to the resumption of federal student loan payments. With 45 million borrowers and 24 percent of those in repayment already delinquent, over 11 million Americans could see their credit scores fall—limiting access to loans for basic goods like cars and appliances.
Defaults are rising now. For context, the subprime crisis triggered systemic collapse at under 10 percent delinquency. Here, we’re already past 20. The difference? The government is absorbing the slow bleed behind the scenes. The student loan system, as a functioning financial engine, is effectively dead.
Student debt accounts for 9 percent of total household liabilities, disproportionately affecting 30 to 59-year-olds. This cohort drives consumption. Credit deterioration here means weakening demand economy-wide.
Apollo calls it a persistent drag. We call it a permanent headwind. There are 59 year olds who are still marked as "delinquent". That money is lost along with college town who need students to attend college and spend money locally.
Full analysis in Premium Post: Post Pandemic Student Loan Delinquency is Bad
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Data on Deck: FOMC Minutes
MONDAY, JULY 7 None scheduled
TUESDAY, JULY 8 3:00 pm Consumer credit
WEDNESDAY, JULY 9 2:00 pm Minutes of Fed's May FOMC meeting
THURSDAY, JULY 10 8:30 am Initial jobless claims, Fed speakers
FRIDAY, JULY 11 2:00 pm Monthly U.S. federal budget-$66B
Full calendar1
Charts and Final Market Check
MONDAY, JULY 7None scheduledTUESDAY, JULY 86:00 amNFIB optimism indexJune98.898.83:00 pmConsumer creditMay$10.0B$17.9BWEDNESDAY, JULY 910:00 amWholesale inventories-0.3%0.2%2:00 pmMinutes of Fed's May FOMC meetingTHURSDAY, JULY 108:30 amInitial jobless claimsJuly 5235,000233,00010:00 amSt. Louis Fed President Alberto Musalem speech2:30 pmSan Francisco Fed President Mary Daly speechFRIDAY, JULY 112:00 pmMonthly U.S. federal budget-$66B
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