About half of the outstanding $1 trillion in federal student loan debt in the U.S. isn’t being repaid. And 1 out of 8 borrowers are defaulting on their loans despite unprecedented federal attempts to help.
An analysis released Monday by the CFPB shows borrowers are struggling to repay their loans and are seemingly unaware of options that could them help avoid default or forbearance.
“That can have serious consequences for their economic future,” said Rohit Chopra, the bureau’s student loan ombudsman. “The troubling part is that many of those defaults could have been avoided if borrowers knew about their options and were able to easily enroll in them.”