“While soaring college tuition and low barriers to borrowing have been widely blamed, the New York Fed’s maps indicate that the worst employment environment in a generation has had a powerful effect. In fact, those states with high delinquency rates on student loans are having trouble with all kinds of debt. The regions on the map with the most red ink—the Deep South and Southeast—also have the highest consumer bankruptcy rates, according to the American Bankruptcy Institute. The Fed’s report further connects the dots between the student debt crisis and the nation’s overall financial health. It also gives policymakers contemplating a bailout something to think about.”
