Student loan borrowers in the Bronx are the worst in New York City at repaying their debts, according to a report issued by the Federal Reserve Bank of New York and the New York City Department of Consumer Affairs.
The report is considered to be the first that attempts to assess the impact of student loan debt on a particular city.
The report’s authors looked at various geographic and demographic variables to develop a snapshot of how student loan debt is affecting New Yorkers. Where people live — whether it is considered a low-income or 
high-income area — affects repayment rates as does the age of the borrowers. Perhaps somewhat surprisingly, older New Yorkers (over the age of 45) have student loans with higher delinquency rates than younger New Yorkers.
Three of the five neighborhoods with the highest default rates on student loans are in the Bronx. The other two neighborhoods are in Brooklyn, according to the report.
Nearly twice as many borrowers over the age of 45 are either delinquent on their student loan payments are in default compared with individuals between the ages of 25 and 44, according to the report,
From the report’s authors:
Acute student loan-connected nancial distress, as measured by the default rate, is troublingly high among New Yorkers from the poorest neighborhoods. We hope that this report will serve as a foundation for policymakers and other stakeholders to develop pragmatic solutions that can provide relief to struggling borrowers.
