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Federal Student Loan Defaults Ratchet Up [as the Federal govt. takes over private lending]
Forbes ^ | 2009-09-18 | Maurna Desmond

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 ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: banking; govwatch; obamasfault; studentloans

1 posted on 09/17/2009 7:25:13 PM PDT by rabscuttle385
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To: wafflehouse; Leisler; PAR35; TigerLikesRooster; AndyJackson; Thane_Banquo; nicksaunt; ...
*Ping!*
2 posted on 09/17/2009 7:25:41 PM PDT by rabscuttle385 (So many Communists, so little time.)
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To: rabscuttle385

Why should they pay it back, they probably figure. Why should THEY be the last sucker left holding the bag?


3 posted on 09/17/2009 7:30:40 PM PDT by 2harddrive
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To: rabscuttle385

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?


4 posted on 09/17/2009 7:44:59 PM PDT by DannyTN
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To: 2harddrive
As a current university student I look forward to the coming Financial Aid bail-out. /sarc>

BTW, did you know that state university and college employees are SEIU members?

5 posted on 09/17/2009 7:46:51 PM PDT by the anti-liberal
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To: rabscuttle385

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.


6 posted on 09/17/2009 8:02:26 PM PDT by Texas resident ( It's us against them. And we're on our own.)
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Is there no corner of national life that these people do not seek to take over and control?


7 posted on 09/17/2009 8:03:05 PM PDT by Godwin1
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To: rabscuttle385

There should be no other way but to pay in advance.


8 posted on 09/17/2009 9:43:00 PM PDT by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote)
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To: rabscuttle385

Captain Wee Wee will save us!


9 posted on 09/17/2009 9:48:52 PM PDT by hsrazorback1 (Seek truth.)
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To: rabscuttle385
Why not stiff the Federal government on student loans? They give Billions to Wall Street bankers, Fanny and Freddie executives, etc. Hell, I'm surprised that ALL students don't just grab the cash and then tell Uncle Sugar to pound sand. What can he do? Repossess their brains?

Screw you Sam. Your dictatorial days are going to end in insolvency...

10 posted on 09/18/2009 8:34:53 AM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: April Lexington

Hey, I like that... Screw You Sam©!!!!


11 posted on 09/18/2009 8:35:28 AM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: 2harddrive

They’ll have to pay it back or have it follow them forever. Student loans can’t be discharged in bankruptcy.


12 posted on 09/18/2009 10:38:30 AM PDT by Huntress (Who the hell are you to tell me what's in my best interests?)
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