Reforms Could Combat Rising Student Loan Defaults
October 9, 2013 RSS Feed Print
Penalties for defaulting on student loans include seizure of tax refunds, garnishment of wages and the partial taking of Social Security payments.
The most recent student loan default rates releasedby the Department of Education show that sadly, but not surprisingly, default rates rose for the sixth year in a row.
Each default is not an abstraction, but a person experiencing personal distress and real financial hardship. Much of this is needless, because small tweaks to already existing programs could go a long way toward eliminating it, in the Student Loan Ranger's opinion.
The cohort default rates measure the percentage of a school's borrowers who default on their loans over a specified period of time. The two-year rates measure the percentage of borrowers who enter repayment on their federal student loans during a particular federal fiscal year and default
