On April 15, Tax Day, Americans have paid the federal government an estimated $1.477 trillion–a slightly higher figure than the total value of outstanding student loans.
Five days ago, the St. Louis Federal Reserve published a report titled “Student Loan Delinquency: A Big Problem Getting Worse?” The Fed determined that of the nearly $1.3 trillion in non-bankruptcy-dischargeable student loans, the delinquency rate for students in repayment is over 27 percent. With tuition at the University of California and other top schools growing faster than inflation, student loan defaults are skyrocketing.
Prior published student loan reports have stated that the “30+ days delinquency rate for all student loans increased significantly over the past 10 years—from 11 percent to slightly above 17 percent.” But most analysts believed that the 77 percent of the increase over the period from 2004 and 2010 was uniquely due to the Financial Crisis.
Many of these analysts argued that the default rate growing to only 17 percent from the 15.8 percent in 2010 demonstrated that rise in student default rates was peaking.
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All of this is ramping up to the 2016 election,where candidates will reveal their plans to alleviate student loan paybacks.Virtually ANYTHING that they come up with will financially hurt the rest of us,unless their answer is to force payback as has always been the resolve.
ReplyDeleteI think 95% of students in one local university are on "scholarship" although the graduation rate is around 16%. Do the math.
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