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The report says in a footnote that "these delinquency rates for student loans are likely to understate actual delinquency rates because almost half of these loans are currently in deferment or in grace periods and therefore temporarily not in the repayment cycle," adding, "This implies that among loans in the repayment cycle delinquency rates are roughly twice as high".
Repeat the repayment cycle once they're all off to college.
The chart below hints at this phenomenon: while the share of borrowers who have fully repaid their loans climbs sharply early in the repayment cycle, it flattens out after the ten-year mark.
Plain Green said in 2015 that its minimum repayment cycle is four months.
Researchers noticed a quirk in the Department of Education's (DOE) accounting that lets it ignore loans temporarily not in a repayment cycle, even if they were technically more than 90 days delinquent.
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In recent months, though, the rough economy has prolonged repayment cycles.
The fittest economies prosper while the weaker ones tend to be snared in an endless and escalating cycle of debt repayment that eventually erodes the debtor country's economic base.
Such creative measures sound costly on their face, but imagine the growth and innovation our culture could see should our talented youth be freed from cycles of debt repayment and wealth disparities that increasingly plague our communities.
The point, Gnessen says, is to balance the see-saw of emotions that accompanies the cycle of debt and repayment and encourage calmer, more rational financial behaviour.
Our clients have a 95percentt repayment rate in four-month loan cycles.
Greece, the most desperate of the debt-ridden European nations, remains stuck in a cycle of onerous debt repayments that have crippled its economy.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com