New think-tank research shows more than 1 million student loan borrowers each year go into default and nearly 40 percent of borrowers are expected to default on their student loans by 2023.
Outstanding education debt in the U.S. has tripled over the last decade and now exceeds $1.5 trillion, posing a greater burden to Americans than auto or credit card debt, CNBC reported.
A new report from the Urban Institute, a progressive think tank in Washington, D.C., analyzed the fates of borrowers who entered repayment in 2012.
Federal loans come with a lot of protections that should make default rare, Kristin Blagg, a research associate at the Urban Institute, focusing on education, told CNBC.
However, those safeguards often fail. Within four years after leaving school, nearly a quarter of the borrowers had defaulted.
More here
[Do you suppose these 'defaulters' are anticipating a government bailout? --Editor]
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Maybe if the interest wasn’t so high people could pay back these loans.
ReplyDeleteWe tried to advance our careers by furthering our education. This isn't always necessary but was a preferred option to ensure a future we thought at that age. By the time I graduated the economy plummeted. I basically work to pay off loans that got me a job that barely pays off loans. Endless cycle of trying to catch up and not let other bills and obligations fall behind. That is why I get upset with handouts and providing for those that don't TRULY need government assistance.
ReplyDeleteTry making with out a college degree. I did. Have 2 homes. Money in the bank. It wasn't always so good but you keep your promise and pay back the taxpayers money. I agree with you there should not be any handouts for college or daily living. Hard work does pay off. Please remember most of you put Obama in office.
ReplyDeleteStart locking them up and have them build the wall!! Pay them minimum wage until the debt is paid for.
ReplyDelete