CREDIT CONCERN

Forty-three million Americans have federal student loan debt. The average balance, $37,000. Conservatively assuming 20% or eight million, are 30 days late at least once this year, their FICO will fall roughly 85 points. That leads to a credit card interest rate rise of roughly eight points. With late payments now being reported to credit bureaus, and wages being garnished from defaulters (25% of borrowers), this will crimp spending.