Retirement derailers have a significant impact and affect the majority of the population. Unexpected life events cost the average American $117,000 in savings, according to a new survey by Ameriprise Financial. This figure jumps to $177,000 for those with investable assets of $750,000 or more. The average respondent experienced four derailers, while 90 percent encountered at least one. Furthermore, 37 percent said they experienced five or more retirement derailers.

“The derailers we discovered in this study could throw a wrench into anyone’s retirement plans,” says Suzanna de Baca, vice president of Wealth Strategies at Ameriprise Financial. “Unfortunately, the chance of being hit by at least one of these risks is extremely high.”

To little surprise, the survey of 50- to 70-year olds with at least $100,000 to invest said the top six derailers were related to the recent financial crisis and the lingering side effects.

The top retirement derailer event — with 63 percent of the vote — was the low interest rate environment our economy now finds itself in, courtesy of the Federal Reserve. Record low interest rates have resulted in lower-than-expected asset growth. Fifty-five percent of people in the survey said market declines caused by the recession derailed their retirement.

With home prices plunging from their bubblicious peaks, 33 percent named lower home equity than expected as a derailer event. Meanwhile, 23 percent took a financial hit by having to support grown children or grandchildren. With defined benefit plans becoming extinct, 23 percent said their pension plan was not worth as much as anticipated or discontinued.

Suzanna de Baca adds, “Expecting the unexpected is clearly more important than ever in preparing for retirement. We know the recession had a huge impact on American pre-retirees and retirees, but families are realizing that other unexpected events like supporting a grown child or grandchild can also hit the bottom line – both immediately and long-term. The good news is that these unanticipated events don’t always have to be retirement derailers – they can be addressed with a plan in place.”

Americans remain mostly positive about their trip to retirement, but their expectations may be different from reality. Sixty-four percent of those surveyed described their road to retirement as smooth, instead of bumpy. Yet, only 18 percent said their savings are ahead of where they thought they would be a decade earlier. Even more concerning, 42 percent admit they are behind prior expectations.

More than half of respondents who have experienced at least one derailing event say the impact has been extremely or somewhat serious. However, 33 percent blame themselves for being behind on savings, and many wish they learned about proper money management sooner. Fifty-six percent blame others for being behind on savings.

Naturally, you are the person that cares the most about your money, but seeking the help of a well-researched financial advisor can greatly improve your chances of an ideal retirement. In the survey, nearly three out of four people with a financial advisor have a written financial plan, compared to only 39 percent of those without a financial advisor. People with written financial plans are more likely to feel confident about affording essentials and unexpected expenses.

Don’t Miss: You Should Listen to Warren Buffett On Economic Moats

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Warren Buffett once said, “In business, I look for economic castles protected by unbreachable moats.” The castle is a metaphor for a company, and the moat represents a strong competitive advantage. Naturally, a wider moat offers more protection in the long-term. The Oracle of Omaha has provided a great deal of wisdom over the years, but this piece of insight is more evident than ever.

Corporate America is a battlefield with an endless supply of warriors trying to breach moats in pursuit of profits. In a 2007 letter to shareholders, Buffett explains, “A truly great business must have an enduring ‘moat’ that protects excellent returns on invested capital. The dynamics of capitalism guarantee that competitors will repeatedly assault any business ‘castle’ that is earning high returns.”

A powerful worldwide brand is one of the most recognizable economic moats. While it is considered to be an intangible asset, it is measured in dollar terms by BrandZ, the world’s largest brand equity database firm.

Calculating variables such as branded earnings, financial value, and brand contribution, the most valuable 100 brands around the globe grew their worth 7 percent to $2.6 trillion last year, with all but two of the 13 categories in the ranking posting year-over-year growth.

Interestingly, the stock performance of the most valuable brands easily outperformed the broad market. To little surprise, Buffett’s Berkshire Hathaway (NYSE:BRKA) owns several names on the list.

Heeding Buffett’s lesson on economic moats and powerful brands has been very profitable in recent years. Between April 2006 and April 2013, a portfolio filled of BrandZ’s top 100 brands has crushed the S&P 500. As the chart below shows, BrandZ’s portfolio has surged 58 percent, while the S&P 500 (NYSEARCA:SPY) has gained 23 percent.

Out of Buffett’s 10 largest equity holdings, eight appear on the top 100 valuable brands list. At the end of the first quarter, Berkshire held large stakes in U.S. Bank (NYSE:USB), Wal-Mart (NYSE:WMT), American Express (NYSE:AXP), International Business Machines (NYSE:IBM), Coca-Cola (NYSE:KO), and Wells Fargo (NYSE:WFC). Procter & Gamble (NYSE:PG) — Buffett’s fifth largest holding — made the most valuable brands list twice with Gillette and Pampers.

Buffett has not been shy about his bullish stance on America. In a recent interview with CNBC, he says, “In terms of the economy, the luckiest person born in the history of the world is the baby being born in the United States.” Considering this, it is very suiting that almost half of the top 100 brands are based in North America, and account for two-thirds of the top 100’s $2.6 trillion brand value.

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Due to the rebound in home prices, Trulia has launched a feature called Trulia Bubble Watch. The new housing market indicator tracks whether home prices are in or nearing bubble territory by measuring how home prices are valued relative to their fundamentals. It gauges the housing market across the nation by looking at 100 of the largest metro areas.

According to Trulia, national home prices are still 7 percent undervalued. In comparison, the housing bubble of yesteryear saw home prices become overvalued by almost 40 percent in the first quarter of 2006. After the bubble popped, home prices became 15 percent undervalued in the fourth quarter of 2011. However, certain areas of the country are seeing houses become overvalued.

The Trulia Bubble Watch finds that 8 of the 100 largest metro areas have home prices above their fundamental value, with half of those being located in California. Cities such as Orange County, Los Angeles, San Jose, and San Francisco are all seeing home prices heat up, but still remain well below their pre-crisis peaks. Texas metros such as Austin, San Antonio, and Houston are also overvalued when compared to the fundamentals. Portland, Oregon rounds out the list.

“Home prices fell so much after the last bubble burst that they still remain below normal levels even as prices rise sharply today,” said Jed Kolko, Trulia’s Chief Economist. “Several forces are waiting in the wings that should slow down today’s rapid price gains before they rise into bubble territory again. More inventory, higher mortgage rates, and fading investor activity would each take home-price gains down a notch.”

The latest reading from the Standard & Poor’s/Case-Shiller index showed a 9.3 percent jump in home prices for February, compared to the prior year. Home prices in 20 major metropolitan areas rose at their fastest rate since May 2006, and beat expectations calling for a 9 percent gain. In fact, all 20 cities posted year-over-year gains for the second consecutive month, which has not happened since 2005. The Case-Shiller index is non-seasonally adjusted and uses a three-month average.

Meanwhile, a separate report from CoreLogic shows that home prices across the nation increased 10.5 percent year-over-year in March, the biggest gain since March 2006 and the thirteenth consecutive monthly increase.

Kolko warns, “Although we’re far from bubble territory today, there’ll be another home-price bubble someday, somewhere. The history of American real estate is full of speculation, bubbles, and busts. Even now, most people expect home prices to get back to the peak of the previous bubble again in the next 10 years. Prices may be far from bubble levels today, but we need to stay on guard for signs of the next bubble.”

Don’t Miss: Is Apple Still the World’s Most Valuable Brand?

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From celebrating a special occasion to simply taking a break from cooking at home, people enjoy eating out more than ever. After some weakness in the first three months of the year, restaurant sales hit a new record high in April, according to preliminary figures from the U.S. Census Bureau. Eating and drinking sales totaled a seasonally-adjusted $45.9 billion last month, up 0.8 percent from March and $200 million above the previous high set in December 2012.

The downtick in the beginning of the year was most likely the result of the sequester and higher taxes taking effect. Bruce Grindy, chief economist at the National Restaurant Association, explains, “After totaling nearly $45.7 billion in December, eating and drinking place sales were dampened somewhat during the first three months of 2013, likely due in part to the impact of the payroll tax hike.”

America is the most gluttonous country in the world, with more than a third of its citizens being classified as obese and more than 300,000 restaurants, but there is still untapped potential for the restaurant industry.

In a survey of 1,000 adults, the National Restaurant Association finds that 49 percent of people are not eating at restaurants as frequently as they would like. The pent-up demand is even strong among those aged 35 to 44, with 59 percent saying they wish to eat out more. Meanwhile, 51 percent of adults polled said they are not ordering take-out or delivery as often as they want.

The next generation also looks set to take a seat at the dining-out table. A nationwide study by Y-Pulse reveals that 63 percent of kids between the ages of 8 and 13 “love” quick-service restaurants in 2013, compared to only 48 percent in 2010.

As the chart above shows, it has been a good year for many restaurant-related stocks. Shares of Wendy’s (NYSE:WEN) and the Cheesecake Factory (NASDAQ:CAKE) have led the way with gains of 28.5 percent and 24.5 percent year-to-date, respectively. Shares of McDonald’s (NYSE:MCD) and Panera (NASDAQ:PNRA) have both increased more than 15 percent this year. However, Yum! Brands (NYSE:YUM) has lagged behind the competition due to food safety issues in China.

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The nation’s second largest publicly-traded gun manufacturer may need to send a thank you note to President Obama.

For the 25th consecutive year, The Boston Globe unveiled its Globe 100 list on Sunday, ranking the best-performing public companies in Massachusetts. The Springfield-based Smith & Wesson (NASDAQ:SWHC) topped the list for the first time in history.

In a press release, the Boston Globe explains, “Smith & Wesson secured the number one spot by achieving revenue growth of more than 40 percent in 2012, significantly improving profit margins, and delivering an average return on equity of more than 55 percent. Company sales continued to surge after intense public debate on gun ownership, and White House efforts to introduce new gun control legislation. In March the company said that, despite increasing production, it was unable to meet market demand for its firearm products.”

Smith & Wesson’s accomplishment is even more impressive, considering the list is dominated by sectors such as technology, biotechnology, and telecommunications. To be considered for the rankings, a company must have corporate headquarters in Massachusetts, trade on the New York Stock Exchange, the Nasdaq, or the American Stock Exchange, have been a public company for all of 2012, and report revenue and profit for both 2011 and 2012.

The gun industry typically receives a boost when a Democrat holds the White House, but gun and ammo sales have surged to record highs as the tragedy in Newtown sparks more debate about gun control.

In January, President Barack Obama and Vice President Joe Biden rolled out a wide-ranging list of executive actions regarding gun control. Furthermore, Obama called on Congress to: ban military-style assault weapons, ban capacities of more than 10 rounds, require background checks on all gun sales, and create tougher penalties for those selling guns to people who are not legally allowed to have them.

After months of discussions and finger pointing, Congress did not answer Obama’s call. A bill aimed at expanding the system of background checks failed in the Senate. It received only 54 votes, six votes short of the 60 needed to advance. Although the bill had co-sponsorship from both political parties, five Democrats broke from party lines, and only four GOP senators voted in favor of the bill. The Senate also blocked a proposal to ban semi-automatic rifles and high-capacity ammunition magazines.

A visibly angry Obama gave a speech shortly after the Senate’s decision. He said, “So all in all, this was a pretty shameful day for Washington. But this effort is not over. I want to make it clear to the American people we can still bring about meaningful changes that reduce gun violence, so long as the American people don’t give up on it. Even without Congress, my administration will keep doing everything it can to protect more of our communities… but we can do more if Congress gets its act together.”

Many people are making purchases ahead of any major changes. In fact, Obama is considered by many to be the best gun salesman in history.

As the chart below from Smith & Wesson shows, background checks for February, while down from January, were 29.1 percent higher from the same month in 2011.

According to an analysis of the gun industry by the Associated Press, the federal government has conducted roughly the same number of background checks for gun owners and prospective buyers under Obama’s first term, as it did under George W. Bush’s first six years of presidency. For the first time since 1993, the number of federally licensed retail gun dealers in the U.S. increased in 2010 and 2011, adding 1,167 more licensed dealers.

Other gun manufacturers are also seeing strong demand. Sturm, Ruger & Co. (NYSE:RGR) had to recently limit incoming orders from independent distributors to reduce the growth in its backlog, which hit 1.5 million orders at the end of 2012, or roughly nine months of production.

Don’t Miss: What is Warren Buffett Buying and Selling?

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What Happened at the IRS, and is Obama Accountable? Last week, Lois Lerner, who leads the Exempt Organizations Division at the IRS, issued an apology admitting that the agency had engaged in “inappropriate” targeting of conservative 501c(4) groups during the 2012 election. According to Lerner, lower-level IRS employees pursued additional review of groups containing keywords like “tea party” or “patriot” that were suspected of violating the conditions necessary to qualify for tax-exempt status… (Read more.)

The American economic narrative continues to be one of slow but determined growth. Retail sales and inflation data topped the major economic releases in the U.S. this week, although a higher-than-expected volume of initial jobless claims did make a few waves. Headline retail sales climbed 0.1 percent on the month, beating expectations for a 0.3 percent contraction. The core rate climbed 0.6 percent… (Read more.)

A 0.1 percent increase in both the core producer price and core consumer price indices suggests that inflationary pressures remain well below the Federal Reserve’s trigger rate of 2.5 percent. Overall inflation is running at an annual rate of about 1.8 percent… (Read more.)

Europe continues to be the biggest global economic risk. Economic growth in both the EA17 and the EU27 contracted by 0.1 percent in the first quarter, according to preliminary data released by Eurostat. This follows respective growth rates of -0.6 and -0.5 percent in the fourth quarter. New data released by Pew Research suggests that the European Union is “the new sick man of Europe,” with domestic support for the monetary union falling to just 45 percent. Only 28 percent of Europeans surveyed think that economic integration has strengthened overall conditions… (Read more.)

Japan’s economy grows under Abenomics. First-quarter gross domestic product increased at a seasonally-adjusted rate of 3.5 percent in the first quarter of 2013, better than the 2.8 percent consensus growth estimate. GDP climbed 0.9 percent on the quarter, driven primarily by personal consumption — about 60 percent of Japan’s GDP — which was up an annualized 3.7 percent. On the other side of the coin, capital expenditures (a proxy for business investment) declined 0.7 percent on the quarter. Exports were climbed 3.8 percent on the quarter, while imports were up 1.0 percent.

Here’s your Cheat Sheet to this week’s top stock stories:

A four-day rally in the S&P 500 looks like it was broken on Thursday when San Francisco Federal Reserve President John Williams suggested that the Fed could reduce the pace of bond purchases this summer. Mr. Market has revealed that he has become addicted to quantitative easing, and the ongoing conversation about an end to QE is having a tremendous impact on equities… (Read more.)

Tesla Motors (NASDAQ:TSLA) has been on a tear. The stock climbed more than 31 percent over the past five trading days and is fast approaching $100. The company turned a profit of $0.12 per share in the first quarter on a 1,762 percent year-over-year surge in revenue to $562 million, beating estimates on both counts. Riding the momentum, the electric-vehicle maker announced that it would be issuing a new round of stock and a pile of convertible notes in efforts to raise another $830 million in order to pay off government loans and expand operations… (Read more.)

Dell (NASDAQ:DELL) traded the week in a pretty tight band between $13.40 and $13.50 per share as the battle for future ownership of the company rages on. The company reported financial results early that revealed a 2.4 percent drop in revenues on the year to $14.1 billion, ahead of expectations for $13.5 billion. However, adjusted earnings decreased 51.2 percent to $0.21 per share, below estimates for $0.35 per share. At this point, the battle for Dell’s future is between Michael Dell and Carl Icahn and crew… (Read more.)

Sony (NYSE:SNE) stock jumped just more than 10 percent over the past 5 trading days, fueled by last week’s generally positive earnings and some bullish comments from Third Point, the hedge fund run by Dan Loeb. Loeb suggests that the company should spin off its entertainment division through an IPO, which, according to the hedge-fund manager, could send Sony stock up as much as 60 percent.

Cisco (NASDAQ:CSCO) stock climbed more than 13 percent over the past 5 trading days as a result of its fiscal third-quarter earnings. Revenues climbed 5.4 percent on the year to $12.22 billion, beating the average analyst estimate of $12.18 billion. Adjusted earnings climbed 6.3 percent to $0.51 per share, beating estimates for $0.49 per share. This is the ninth consecutive quarter that the company has posted record revenue, and the company indicated that it will be able to maintain momentum moving forward.

Does Jamie Dimon Wield Too Much Power? Warren Buffett has long admired the skills of JPMorgan Chase (NYSE:JPM) Chief Executive Officer and Chairman Jamie Dimon, and praised the executive in his annual letter to shareholders. But many investors have begun to question whether he has made too many mistakes during his tenure to hold both positions. On a related note, analysts and shareholders have also begun to wonder whether he has too much power… (Read more.)

David Tepper Is Not the Only One Dumping Apple: Apple (NASDAQ:AAPL) closed down 3.38 percent at $428.85 Wednesday, falling below its 50-day moving average for the first time in close to a month. The fact that shares fell below this psychologically important level for the second time in less than a month, the stock hit a new 52-week low, and the company reported its first quarter-over-quarter earnings decline in a decade all in the same four-week span has made investors nervous… (Read more.)

Is the McDonald’s Menu Short On Innovation? Hedgeye Risk Management rebuts claims offered by Wall Street analysts that McDonald’s (NYSE:MCD) needs a “hero-like lifting” from U.S. consumers, arguing that their expectations for reflation are stretched. It instead predicts that the fundamentals of McDonald’s business will simply lead it to lower its 2013 earnings per share estimate… (Read more.)

Don’t Miss: Consumer Sentiment Hits Highest Level Since July 2007.

The average age at which U.S. retirees claim they actually retired now stands at 61, compared to 57 in 1995, according to Gallup’s annual Economy and Personal Finance survey conducted last month. As the chart below shows, the average age for retirement has been trending upwards over the past two decades.

While the greatest financial crisis since the Great Depression certainly caught many Americans off guard and damaged personal wealth across the nation, the longer-term trend suggests other factors might be at work too.

Gallup says the results may indicate changing views about the value of work, the composition of the workforce, and a decline in jobs with mandatory retirement ages. Americans may even receive health benefits from delaying their retirement. Gallup finds that Americans aged 60 to 69 who work have slightly better emotional health. Other factors such as higher living costs and stagnant wages should also not be overlooked.

Younger Americans are growing more pessimistic about their golden years. The average non-retired American does not expect to retire until the age of 66, compared to 60 in 1995. Furthermore, 37 percent of those polled by Gallup say they expect to retire sometime after the age of 65, up sharply from 22 percent a decade ago and 14 percent in 1995. Meanwhile, only 26 percent say they will likely retire before age 65, down significantly from 49 percent in 1995.

Americans were more likely to say they will retire after age 65 than before that age for the first time in 2010. As the chart below shows, this gap does not appear to be disappearing anytime soon. As Americans near retirement age, they are more likely to feel the need to work longer. More than half of non-retirees aged 58 to 64 expect to retire after age 65, compared to 36 percent for those aged 50 to 57, and 38 percent between the ages of 30 and 49.

Gallup notes, “Retirement accounts of the older group may have declined in value during the economic recession, while the younger group may feel that their retirement accounts’ values will be high enough for them to retire at age 65 or younger — even taking into account the uncertain financial situations of Social Security and Medicare.”

The results echo a recent study from Bank of America’s Merrill Lynch that finds retirement is being redefined. Seven out of ten pre-retirees say they will most likely be employed at least some of the time in retirement. Thirty-nine percent plan to work part-time, while 24 percent will cycle between work and leisure.

Don’t Miss: What is Warren Buffett Buying and Selling?

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Late Wednesday, many institutional investment managers filed their mandatory 13-F with the U.S. Securities and Exchange Commission. The filing is a quarterly report of equity holdings required by managers that oversee more than $100 million in qualifying assets, and must be filed within 45 days of the end of each quarter.

The 13-F provides a peek at what hedge funds did in the previous quarter, but investors should keep in mind that hedging and trading strategies of each fund are still unknown.

Berkshire Hathaway reported new positions in Chicago Bridge & Iron (NYSE:CBI), an energy infrastructure company, and Starz (NASDAQ:STRZA), a premium cable network. As revealed earlier this month, the firm also increased its stake in DaVita HealthCare Partners (NYSE:DVA).

Considering the sizes of these positions, they are more likely to be the work of Buffett’s managers, Ted Weschler and Todd Combs. Berkshire’s position in Chicago Bridge & Iron was worth $404.2 million at the end of the first quarter, while Starz’s position totaled a modest $124.5 million. DaVita HealthCare stood at $1.8 billion as of the end of March.

Berkshire also made several other notable moves in smaller stakes. The position in DirecTV (NASDAQ:DTV) increased from 34 million shares in the fourth quarter to 37.3 million shares in the first quarter. Its stake in National Oilwell Varco (NYSE:NOV) surged 41 percent from 5.3 million shares to 7.5 million shares, while Berkshire’s holdings in VeriSign (NASDAQ:VRSN) more than doubled to 8.2 million shares, worth $386.4 million.

Interestingly, Berkshire completely sold out of Archer Daniels Midland Company (NYSE:ADM) and General Dynamics (NYSE:GD). It also trimmed its position in The Bank of New York Mellon (NYSE:BK) from 19.6 million shares to 18.9 million shares, and Mondelez International (NASDAQ:MDLZ) from 12.8 million shares to 7.1 million shares.

Buffett likely did the buying in some of Berkshire’s long-time favorites. The stake in Wells Fargo (NYSE:WFC) grew 4.2 percent from 439.9 million shares to 458.2 million shares, worth $16.9 billion. Meanwhile, the stake in Wal-Mart (NYSE:WMT) increased 5.1 percent to 49.2 million shares ($3.7 billion), compared to 47 million shares in the fourth quarter.

Berkshire’s stake in U.S. Bank (NYSE:USB) and International Business Machines (NYSE:IBM) also increased slightly.

Don’t Miss: The Student Debt Bubble Reaches a New Record

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For the first time in company history, shares of Google (NASDAQ:GOOG) crossed above $900 on Wednesday. Shares first hit $800 less than three months ago. Aside from receiving publicity from Google Glass and self-driving cars, the gatekeeper to the Internet has been attracting heavy attention from hedge funds and continues to build excitement with its ever-expanding platform.

On Wednesday, the California-based company kicked off its three-day developer conference Google I/O in San Francisco. Google announced that Android has 900 million activations to date, compared to 400 million activations at last year’s conference. It also unveiled a new subscription music service called All Access, which will be a direct competitor to other streaming services such as Spotify and Pandora (NYSE:P). All Access will launch in the U.S. for $9.99 per month, with a free 30-day trial.

Chris Yerga, engineering director at Google, explains, “We wanted to service the power of Google to surface music we know you are going to love. Radio without rules, your one click access to music, your personal library blended with ours.”

Yahoo (NASDAQ:YHOO), one of the few names from the dot-com bubble to survive, has also logged some impressive moves. Shares have jumped 36 percent year-to-date, nearing a market cap of $30 billion. Since new chief executive officer Marissa Mayer — formerly a long-time employee of Google — joined the company in July 2012, shares have surged more than 70 percent.

Most recently, Yahoo’s CFO Ken Goldman said the company plans to keep the momentum going by becoming more relevant with young adults. It will advertise more at sporting events and other places.

In a conference in Boston on Tuesday, Goldman said, “Part of it is going to be just visibility again in making ourselves cool, which we got away from for a couple of years.”

Analyst Heath Terry from Goldman Sachs (NYSE:GS) also raised his price target on Yahoo from $27 to $30 a share on Tuesday. He believes Yahoo’s Alibaba stake is worth twice the original estimate.

Even some of the left-for-dead tech companies have been on the upswing this year. Shares of Hewlett-Packard (NYSE:HPQ) and Dell (NASDAQ:DELL) have gained 45 percent and 32 percent year-to-date, respectively. Netflix (NASDAQ:NFLX) shares have more than doubled, and it is the best performer this year in the S&P 500.

Don’t Miss: Is the Average Joe Still Buying Apple?

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In the first three months of 2013, total outstanding household debt declined $110 billion from the previous quarter to $11.23 trillion, according to the latest Household Debt and Credit Report from the Federal Reserve Bank of New York. In comparison, household debt peaked at $12.68 trillion in the third quarter of 2008. Mortgage debt decreased from $8.03 trillion to $7.93 trillion, while credit card balances fell $19 billion to $660 billion.

“After a temporary deceleration in the previous quarter, the data suggest that household deleveraging has resumed its previous trajectory,” said Wilbert van der Klaauw, senior vice president and economist at the New York Fed. “We’ll look to see if this pace of debt reduction and delinquency improvements will persist in upcoming quarters.”

However, household outstanding student loan debt jumped $20 billion to $986 billion, a fresh all-time high. In fact, mortgages are the only debt outstanding that is greater than student loans. The Consumer Financial Protection Bureau believes total student debt outstanding has already passed the $1-trillion mark.

On the positive side, the New York Fed reports that the number of borrowers who have fallen behind on their student debt by at least 90 days edged lower to 11.2 percent in the first quarter, compared to 11.7 percent in the fourth quarter of 2012. This is still the second highest delinquency rate on record though. Prior to the financial crisis, the average student loan delinquency rate averaged roughly 7 percent.

Interestingly, the delinquency rates of student loans are likely even higher than reported. In the fine print of a previous report, the Fed explains: “These delinquency rates for student loans are likely to understate actual delinquency rates because almost half of these loans are currently in deferment, in grace periods or in forbearance and therefore temporarily not in the repayment cycle. This implies that among loans in the repayment cycle delinquency rates are roughly twice as high.”

Students are also more likely than ever to take out a loan to pay for college. The average price of college tuition increases an average of 8 percent a year, meaning the cost of tuition doubles about every nine years. This outpaces almost every other kind of inflation that is widely tracked. Using debt to obtain a degree can be beneficial if done properly, but a weak job market and stagnant incomes are weighing on graduates.

Borrowers are struggling to repay student loans. In only the first two months of 2013, banks declared $3 billion of student loan debt as noncollectable, according to Equifax’s latest National Consumer Credit Trends Report. This represents a 36-percent surge from the same period last year.

“Driven heavily by economic factors, including unemployed or under-employed consumers going back to school along with the rising cost of tuition, student lending has demonstrated consistent, year-over-year growth,” said Equifax Chief Economist Amy Crews Cutts. “Continued weakness in labor markets is limiting work options once people graduate or quit their programs, leading to a steady rise in delinquencies and loan write-offs.”

Don’t Miss: Does the Housing Recovery Remain Intact for Home Builders?