The portion of households categorized as “severely derogatory” on payments is hovering at 2 percent, the same percent it has been at since 2015. The Federal Reserve Bank of New York categorizes “severely derogatory” as “any stage of delinquency paired with a repossession, foreclosure, or ‘charge off.'” Defaulted student loans constitute 35 percent of the roughly $250 billion severely derogatory outstanding balance.
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