Of all the outstanding debt from student loans, how much is in default? How much of that default has occurred in the past four years, and how much of that would start getting paid, if the economy turns around? It seems like those are questions that need to be answered before taxpayers are forced to foot the whole student loan bill.
The share of federal student loan defaults rose sharply last year, especially at for-profit colleges and universities, where 15 percent of borrowers defaulted in the first two years of repayment, up from 11.6 percent the previous 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.
http://www.nytimes.com/2011/09/13/education/13loans.html