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Liberal_in_LA

(44,397 posts) Sun Aug 11, 2013, 11:03 PM Aug 2013

half of outstanding student loan isnt being repaid. 7 million in default [View all]

Half of Outstanding Student Loan Debt Isn't Being Repaid
Though millions of borrowers are in default, only 10 percent have enrolled in income-based repayment plans

U.S. students owe more than $1 trillion in student loans, and more than 7 million students are in default, according to the Consumer Financial Protection Bureau.
Outstanding student loan debt is now the second largest form of consumer debt, but about half of the $1 trillion in student loan debt isn't being repaid because the borrowers are struggling to make payments, according to an analysis released Monday by the Consumer Financial Protection Bureau.

http://www.usnews.com/news/articles/2013/08/06/half-of-outstanding-student-loan-debt-isnt-being-repaid

83 replies

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half of outstanding student loan isnt being repaid. 7 million in default [View all] Liberal_in_LA Aug 2013 OP

Higher education costs in the US are out of control. Tuition and fees need to be on a sliding scale leveymg Aug 2013 #1

Student loan debt has the potential to unseat inert office holders, Eleanors38 Aug 2013 #4

How about the idea customerserviceguy Aug 2013 #27

I got a degree in Med Lab Tech. Health care supposedly growing field with 100% employment in MLT magical thyme Aug 2013 #46

sorry about your circumstances Liberal_in_LA Aug 2013 #63

Tell me about it customerserviceguy Aug 2013 #75

There is a LOT of waste at colleges and universities - $20K, $30K tuitions are crazy. reformist2 Aug 2013 #29

I agree Lee-Lee Aug 2013 #41

I think you're missing the real problem.... mike_c Aug 2013 #51

Missing the real problem. nil desperandum Aug 2013 #81

The republican part of the program is a success then. Turbineguy Aug 2013 #2

This is a big deal. We need to promote more news about student loans Moral Compass Aug 2013 #3

Yes, it is. Igel Aug 2013 #5

I don't think many people care about .... oldhippie Aug 2013 #50

while we're at it bigapple123 Aug 2013 #53

And that raises an interesting question. What part of .... oldhippie Aug 2013 #56

i think bigapple123 Aug 2013 #6

I believe you're correct... KansDem Aug 2013 #30

I've heard that the reason student loans can't be discharged is because they can't be repossessed Liberal_in_LA Aug 2013 #64

Why can people declare bankruptcy for debts spent on gambling, hookers, cars, booze & drugs, but not limpyhobbler Aug 2013 #7

A student loan customerserviceguy Aug 2013 #28

You're talking about government student loans, or loans backed by "the taxpayers". limpyhobbler Aug 2013 #35

If private student loans were bankruptable Lee-Lee Aug 2013 #37

Oh ok, so let's just create a system of lifetime indentured servitude to the banks instead. /sarcasm limpyhobbler Aug 2013 #40

Or Lee-Lee Aug 2013 #42

Your proposals are weak and puny limpyhobbler Aug 2013 #45

out of curiosity bigapple123 Aug 2013 #55

... limpyhobbler Aug 2013 #71

. bigapple123 Aug 2013 #72

Banks got bailed out / We got sold out limpyhobbler Aug 2013 #74

If nobody needs private student loans, why do people use them. Travis_0004 Aug 2013 #76

So you're against any regulations on consumer financial services? limpyhobbler Aug 2013 #77

I think bigapple123 Aug 2013 #80

It's completely realistic. It was the law until 2005. limpyhobbler Aug 2013 #82

so basically bigapple123 Aug 2013 #78

I completely disagree with everything you just said but I'm also sick of talking to you. limpyhobbler Aug 2013 #83

"Income based repayment" is a joke. Xolodno Aug 2013 #8

We sure couldn't see this coming! shanti Aug 2013 #9

I never hear anyone ever mention 2naSalit Aug 2013 #10

Unfortunately we cannot simply forgive these outstanding loans.... Demo_Chris Aug 2013 #11

That's what Social Security is for. n/t jtuck004 Aug 2013 #12

Huh? oldhippie Aug 2013 #49

That's when they will start paying it back. In debt for their entire life, jtuck004 Aug 2013 #60

Ah! OK, I got it oldhippie Aug 2013 #61

Sad, isn't it? We took it from an investment in the greatness of our country jtuck004 Aug 2013 #62

A lot of these were witten off years ago and any payments go to vulture collection agencies. Spitfire of ATJ Aug 2013 #14

That's entirely irrelevant. Demo_Chris Aug 2013 #16

It should be free. My point is a lot of this debt doesn't even go to the schools.... Spitfire of ATJ Aug 2013 #17

True, but until it's actually free this is what we are stuck with. nt Demo_Chris Aug 2013 #19

The 1st way we phase into a free system is to forgive outstanding debt. Spitfire of ATJ Aug 2013 #21

Nonsense.... Demo_Chris Aug 2013 #22

The rich are going to go to ivy league places anyway. There was a time when the rich built schools.. Spitfire of ATJ Aug 2013 #23

Nope. All that has to happen is Congress pass a law and the President sign ... oldhippie Aug 2013 #47

that's nice bigapple123 Aug 2013 #57

Who's going to pay for it? oldhippie Aug 2013 #59

Um no - it's not true that the majority of college students are wealthy. limpyhobbler Aug 2013 #36

Some of these are decades old and will never be collected. Spitfire of ATJ Aug 2013 #13

Isn't the first reuirement of an "income-based repayment plans", uh, income? And with half of them jtuck004 Aug 2013 #15

I am surprised that it's not MORE.. SoCalDem Aug 2013 #18

parents are paying the monthly payments for a good percentage, others are struggling Liberal_in_LA Aug 2013 #66

If they think they are getting money out of me davidpdx Aug 2013 #20

Oh, they'lll get it all right Orrex Aug 2013 #38

No, but the vampiristic lenders will when they run out if blood. Dash87 Aug 2013 #67

Most of my friends who got PhDs have six figure debt. a la izquierda Aug 2013 #24

Ah, I tip my hat to you! KansDem Aug 2013 #32

I got very, very lucky. a la izquierda Aug 2013 #68

Hard to pay off a student loan with a $8.75/hr part time job. hobbit709 Aug 2013 #25

Actually, the lenders are pretty flexible about it Orrex Aug 2013 #39

Schools are just as much to blame for this as the lenders liberal N proud Aug 2013 #26

Perhaps university departments should be required... KansDem Aug 2013 #33

Interesting. 96% placement and $58K starting salary .... oldhippie Aug 2013 #48

Agreed. Someone disinterested should be in charge of credit approval. lumberjack_jeff Aug 2013 #54

50% in default is a shocking figure - yet more evidence the system, economy is broken. reformist2 Aug 2013 #31

My family has enrolled in the program to adjust the payment and it makes quite a difference. jwirr Aug 2013 #34

Or, looking at the figures in the article, 91% of debt is not in default bhikkhu Aug 2013 #43

In dollars, it's 9%. But in terms of people, it's 50%. reformist2 Aug 2013 #58

I do not think people are really ready for a true income based repayment program Bunnahabhain Aug 2013 #44

hm... bigapple123 Aug 2013 #52

Gee. What. A. Surprise. Safetykitten Aug 2013 #65

Ban "for profit" colleges from government or government backed student loans. gulliver Aug 2013 #69

they will get it even if they have to garnish wages sad-cafe Aug 2013 #70

Such a stupid system MFrohike Aug 2013 #73

That's what happens when wages are kept low and jobs are shipped overseas Marrah_G Aug 2013 #79