The US student loan delinquency rate remains low at 0.65%, according to the latest Household Debt and Credit Report review. This trend is attributed to the ongoing legal battle over student loan forgiveness, with the recent 8th Circuit Court ruling delivering another hurdle to the administration's plan to forgive $475 billion in student loans. As a result, consumer spending remains tight, with credit card delinquencies rising to 10.93% and commercial real estate continuing its downward trend.

With student loans currently making up 9% of overall household debt, there are concerns about the potential impact on the economy if delinquencies were to rise significantly. The administration's efforts to forgive these loans may be crucial in avoiding $53 billion per year in delinquencies and maintaining consumer spending levels.

Source: https://wordsofwill.com/2024/08/09/august-2024-housing-credit-market-analysis-may-2024-follow-up/