Default Rates on Student Debt Rise Sharply

what i’m going through.. smh

24/7 Wall St.

It may be shocking that many people who took out student loans cannot pay them, until the full circumstances of the situation are explained. And these circumstances demonstrate why the system to make the loans was based on crazy assumptions in the first place.

The Education Department and the Consumer Financial Protection Bureau have put out a report that covers the private college loan system and how it has created a large number of loans that can never be paid back.

Among the points the report makes are:

American consumers owe more than $150 billion in outstanding private student loan debt.

And:

Cumulative defaults on private student loans exceed $8 billion, and represent over 850,000 distinct loans.

Finally:

In 2009, the unemployment rate for private student loan borrowers who started school in the 2003 – 2004 academic year was 16%. Ten percent of recent graduates of four-year colleges have monthly payments…

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