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Moody’s: Slow Student Loan Repayment Driving High Balances, Bringing Social, Credit Implications
Author: Ray Schroeder
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Rick Seltzer, Inside Higher Ed
Slow repayments have become the most important contributor to rising student loan balances, Moody’s Investors Service. In the past, rising tuition and climbing college enrollments were the largest contributors to increasing student loan balances, according to the ratings agency. But the drivers shifted to slow repayment, which is likely to combine with continued elevated levels of borrowing to increase outstanding debt into the future. Moody’s singled out social and credit implications for increasing student debt burdens. Student debt is “weighing on household finances and the broader economy,” according to Moody’s.