Skip to comments.Federal Student Loan Defaults Ratchet Up [as the Federal govt. takes over private lending]
Posted on 09/17/2009 7:25:13 PM PDT by rabscuttle385
Just as the government's grip on the lending business for higher education tightens, the Department of Education is reporting that defaults on taxpayer-backed student loans surged in 2007 at the very beginning of the credit crisis, suggesting that more losses are baked in.
The national student loan default rate increased to 6.7% in 2007, up from the 2006 rate of 5.2%, the agency reported Monday. "The economic downturn likely had a significant impact on the borrowers captured in these rates," U.S. Secretary of Education Arne Duncan said. "The Department is reaching out to make sure current and prospective student borrowers are aware of the many flexible repayment options designed to assist them with their financial obligations, such as the new Income-Based Repayment Plan."
(Excerpt) Read more at forbes.com ...
Why should they pay it back, they probably figure. Why should THEY be the last sucker left holding the bag?
I still think that’s a good program. 1 in 20 defaults, so what.
But 19 in 20 get an education, pay back the loan with interest, and pay more in taxes than they would have without the education.
Seems like a win win to me.
They need to examine what they are doing wrong with the 1 in 20. Are there certain degrees that aren’t in demand? Are they making loans to career students that don’t intend to ever pay the money back? And can they tell the difference? etc?
BTW, did you know that state university and college employees are SEIU members?
Great, now we will have to go to uncle sugar for a college loan. Now, that won’t be politicised now will it. My good grade making white kids don’t stand a chance.
Is there no corner of national life that these people do not seek to take over and control?
There should be no other way but to pay in advance.
Captain Wee Wee will save us!
Screw you Sam. Your dictatorial days are going to end in insolvency...
Hey, I like that... Screw You Sam©!!!!
They’ll have to pay it back or have it follow them forever. Student loans can’t be discharged in bankruptcy.
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