Every 28 seconds, another American borrower defaults on a federal student loan.
Today, nearly 20 percent of the 44 million people burdened by $1.4 trillion in student debt are in default.
One problem is that loan servicers, which collect and process payments, are incentivized to guide borrowers into more costly payback schemes, according to consumer advocates.
Earlier this month, the Consumer Financial Protection Bureau slapped the nation’s largest student-loan servicer, Navient — formerly part of Sallie Mae — with a lawsuit alleging the company incorrectly processed payments, and steered troubled borrowers toward expensive repayment plans.
Navient, which services roughly $300 billion in loans taken out by 12 million borrowers, disputes the allegations.
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7 comments:
I just wonder if they have stats on the students , how many are illegal , or temporary green cards , or just plan minority ?
The loan system in this country is seriously flawed. I feel sorry for kids these days; an education should not put you in debt for the majority of your life
Student Loan and Auto loans will be the next bubble to pop!
I look for my sons to live at home for me for years to come to pay off these debts!
Any debt made by you or I has to be paid back in full, probably with interest, so why should college students be any different? If you're big enough to take out the loan then be big enough to pay it back.
11:15 AM Shortsighted statement. Just because someone is "Of age" to sign on the dotted line doesn't mean they have a full understanding of what they are signing, or have been educated to the full ramifications of what they are signing.
The loan companies do a very poor job. I had a small student loan and honestly I had no clue, as to how badly I was being ripped off. I fortunately had enough saved to pay it off within a couple of months of it coming due.
Their job is to rip you off and make as much money as they can off you.
Anonymous Anonymous said...
Any debt made by you or I has to be paid back in full, probably with interest, so why should college students be any different? If you're big enough to take out the loan then be big enough to pay it back.
January 30, 2017 at 11:15 AM
Such forward thinking here. Haven't heard this one before. I am sure this is becoming a major issue because the students are rolling in money and don't feel like giving it back. "You borrowed the money, now pay it back." I am sure they would love to pay the debt off and not have to worry about it....the problem is they can not. You can blame the KIDS for borrowing money but you can not blame the current state of our economy on them, which is why it is so hard to pay back the money.
1144 and 1148 - BINGO!!!!!!!!!!!!!!!!!!!!
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