creekland Posted October 7, 2011 Share Posted October 7, 2011 Has anyone seen or started a thread about this yet? http://www2.ed.gov/offices/OSFAP/defaultmanagement/instrates.html When looking at the stats, it really shows that those "for profit" schools have a bit higher of a default rate... and four year private schools have the lowest default rate. I found it interesting... understandable and interesting. Anyone else? Quote Link to comment Share on other sites More sharing options...
Lori D. Posted October 7, 2011 Share Posted October 7, 2011 (edited) What jumped out at me: for every category -- private, public or other -- the percent of defaulted loans has increased on average by 2%. That's two MORE people per hundred who take out loans and default that taxpayers are carrying... Makes me wonder when the "student loan bubble" is gonna burst -- and how many people it will take down when it does. :( Edited October 7, 2011 by Lori D. Quote Link to comment Share on other sites More sharing options...
mjbucks1 Posted October 7, 2011 Share Posted October 7, 2011 This article was in our local paper Sunday: http://www.dispatch.com/content/stories/business/2011/10/02/program-can-help-grads-pay-off-loans.html If more people knew about this program, there may be fewer defaults on government loans. Quote Link to comment Share on other sites More sharing options...
Murphy101 Posted October 7, 2011 Share Posted October 7, 2011 I'm confused. I thought you can't default on a student loan? I know you can't add them to your bankruptcy, so how are people defaulting?:confused: Quote Link to comment Share on other sites More sharing options...
Renee in NC Posted October 7, 2011 Share Posted October 7, 2011 I'm confused.I thought you can't default on a student loan? I know you can't add them to your bankruptcy, so how are people defaulting?:confused: They don't pay them. Eventually the federal gov't will garnish wages, take tax refunds, etc. but there is a limit to what they can do. They can't garnish wages unless the income is over a certain level or if the person is self-employed. They won't take tax refunds if the spouse makes all the money (they can file an injured spouse form.) Also once defaulted it doesn't always mean defaulted and "default" kicks in at 30 days past due. There are several ways to keep loans out of default if you can't pay them, but many people don't know how/what to do. Quote Link to comment Share on other sites More sharing options...
Lori D. Posted October 7, 2011 Share Posted October 7, 2011 I'm confused.I thought you can't default on a student loan? I know you can't add them to your bankruptcy, so how are people defaulting?:confused: "Loan Default" just means the borrower fails to repay a loan according to the terms agreed to in the promissory note -- and the lender can take legal action to get the money back. And the U.S. Gov't. does have methods for collecting on defaulted loans -- take it from income tax refund; garnish wages; collection agency. However, it does add to the costs of our Gov't to have to go after loans in default. And, just because the Gov't CAN take legal action to try and collect, not everyone who defaults on a school loan is "found" by the Gov't collections, or is able to pay. In those cases, Gov't (i.e., taxpayers) must "eat" the loan. Quote Link to comment Share on other sites More sharing options...
creekland Posted October 7, 2011 Author Share Posted October 7, 2011 What jumped out at me: for every category -- private, public or other -- the percent of defaulted loans has increased on average by 2%. That's two MORE people per hundred who take out loans and default that taxpayers are carrying... Makes me wonder when the "student loan bubble" is gonna burst -- and how many people it will take down when it does. :( Considering how the economy has really tanked and new grads are having a tougher time getting employed in higher paying jobs, I was surprised that the increase wasn't higher across the board. Quote Link to comment Share on other sites More sharing options...
pqr Posted October 8, 2011 Share Posted October 8, 2011 Considering how the economy has really tanked and new grads are having a tougher time getting employed in higher paying jobs, I was surprised that the increase wasn't higher across the board. I agree, I would also like to see the numbers by major. Is the default higher in "basket weaving" vs chemical engineering. Quote Link to comment Share on other sites More sharing options...
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