Commentary
Lending money is not, as they say, rocket science.
According to the Federal Reserve Bank of St. Louis, in the last quarter of 2021, of the total of all outstanding business loans from all commercial banks, 1.08 percent were delinquent.
Per the Federal Reserve Bank of New York, as of second quarter 2021, a little over 2 percent of the $1.4 trillion outstanding in auto loans were delinquent.
Yet in the student loan market, totaling around $1.6 trillion, not that different from the total size of the auto loan market, an average of 15 percent are in default at any given time, per the Education Data Initiative.
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