Linking Credit History and Student Loan Debt
A new report from the Urban Institute sheds light on who defaults on student loans by looking at the relationship between a borrower’s credit history and the likelihood they will default. Of the nationally representative cohort examined, more than 20% defaulted at least once during the four years studied. Defaulters were more likely to live in neighborhoods with more residents of color and fewer adults with a bachelor’s degree or higher, and were also more likely to have other types of debt such as credit card or car payments.