Student loan defaults rise sharply, only 37% paid off fully & on time

[Liberal_in_LA]

Student Loan Default Rates Rise Sharply in Past Year


According to Department of Education data released Monday, 8.8 percent of borrowers over all defaulted in the fiscal year that ended last Sept. 30, the latest figures available, up from 7 percent the previous year.

At public institutions, the rate was 7.2 percent, up from 6 percent, and at not-for-profit private institutions, it was 4.6 percent, up from 4 percent.

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Although for-profit colleges, which typically serve low-income students, enroll only about 10 percent of the nation’s undergraduates, Mr. Kvaal said, their students made up 150,000, or almost half, of the defaults.

The problem may be even greater. “Some research has shown that as few as one in five defaults at a for-profit college occur in the two-year window,” said Debbie Cochrane, program director at the Institute for College Access & Success, which runs the Project on Student Debt. “The extent of borrower distress is barely touched upon with these rates.”

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A recent study by the Institute for Higher Education Policy found that for every borrower who defaults, at least two more fall behind in payments. The study found that only 37 percent of borrowers who started repaying their student loans in 2005 were able to pay them back fully and on time.


http://www.nytimes.com/2011/09/13/education/13loans.html

[OhioChick]

1. Solution would be JOBS n/t

[etherealtruth]

2. No shit

It's kinda hard to repay student loans when the available jobs for college grads are low paying or worse ... nonexistent.

[Manifestor_of_Light]

3. They will take it out of your Social Security. No kidding.

DH got a worthless degree from the for-profit Art Institutes. Seventeen years ago.
They're taking the student loan payment out of his Social Security and he can't get them to tell him what the balance is.

:wtf:

[OhioChick]

4. I doubt the "kids" have to worry about SS...

Older adults, maybe so.

[Ruby the Liberal]

6. Yes - they will. Student loans will follow you to the grave.

Ever since it became the law that they can never be discharged with the 1990s bankruptcy bill.

[Ruby the Liberal]

5. And since student loans can't be discharged in bankruptcy

these kids will find their wages garnished on their shiny new job. Thanks Uncle Joe. Love ya, but I will forever hold this gem over your MBNA-bought Delaware head.

Any takers on guessing the % of kids being garnished for student loan default aren't even working in their field of study?