Student loan debt topped $1.3 billion at the end of December, according to numbers from the New York Federal Reserve. More are having problems paying off the loans, with delinquencies — in which no payment has been made for at least 90 days — now at 11.3% for all loans.
The University of California’s governing board will not revisit its November decision to hike student fees by up to 28 percent over the next five years, despite a plea by one of its own members to reconsider.
While Americans are carrying more debt, their earnings are barely ahead of where they were a decade ago. Household earnings have increased only 2 percent during the past 10 years, The Pew Charitable Trusts said in a study issued last month.
There are 30 states still collecting less in taxes, adjusted for inflation, than when the recession hit, according to a Pew Charitable Trusts study that examined the data through September.
Local governments have racked up huge debts, largely off-balance sheet, as they went on spending binges designed to promote growth and gild the reputations of officials. Borrowing through 10,000 local government finance vehicles was nearly $3tn, according to a government survey published in December 2013.
Pennsylvania’s elected fiscal watchdog, Auditor General Eugene DePasquale, says Scranton will go bankrupt in the next two to four years unless lawmakers come up with a statewide solution to the state’s growing problem of municipal pension debt.
As the ECB and national members embark on purchases of sovereign debt designed to boost price growth in the region, rates on short-term bonds are below zero in seven euro-area nations, meaning a buyer would get less back than they paid if they held them to maturity.
The yield on German, Italian and Spanish 10-year government bonds has fallen to new record lows following the launch of a massive ECB program to ward off deflation.
European Union finance ministers gave France two more years on Tuesday to cut its budget deficit to within EU limits, extending the deadline for the third time since 2009 as Paris struggles to enact reforms.
Government debt can no longer be considered a risk-free asset for banks, and international regulators should consider changing the existing legislation, the European Systemic Risk Board said.
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