All Articles Tagged "student loan default"
(Gannett News Service) — The number of people who aren’t paying back their student loans is on the rise, and the government is increasingly threatening to sue them for the money. The amount of loan defaults that the Education Department has referred to Justice Department lawyers for possible legal action nearly doubled from 2009 to last year: There were 2,596 in 2009, and then 5,393 last year, Education Department figures show.
(Wall Street Journal) — Defaulting on federal student loans may not be such a bad thing–at least, not for the federal government. After paying the companies that actually collect the loans and other costs, the U.S. Department of Education expects to recover 85% of defaulted federal loan dollars based on current value. The recovery figures are quite generous when compared with other corners of consumer debt. Banks, for example, often retrieve less than 10 cents on the dollar from overdue credit cards. According to White House budget figures for fiscal 2011 ending in September, the federal government expects gross recovery of between $1.10 and $1.22 for every dollar of defaulted student loans.