Wait a minute. THEY DEFAULTED AND GOT FREE MONEY!
The question is: "How bad is this for taxpayers left holding the bag?"
The answer is: "Worse than ever since the Government just took over all Student Loans in one of the several great Nationalizations of Industry under 0bama."
Read #3....You can’t get rid of them and taxpayers are not paying for them. The students are screwed not the taxpayers. Defaulted just means they are behind on the payments as the interest compounds.