DebtDoc Bankruptcy News Blog

Thursday, 19 October 2017 04:10

Federal Student Loan Defaults Climb

If you have defaulted on your federal student loan — you are not alone. According to a September 2017 article in the Washington Post, “the share of people not making payments on their federal student loans within three years of leaving college has risen, reversing five years of reported declines in new defaults.”

The shift is subtle — up to 11.5 percent from 11.3 percent from 2015 to 2016 — but the raw numbers show what a significant issue this is. Of the more than 5 million people who began repaying their student loans in October 2013, 580,671 defaulted.

In addition to posing problems for borrowers, the article notes that loan defaults have consequences for colleges, as the U.S. Department of Education can impose sanctions on schools with default rates above 30 percent for three years in a row, or 40 percent for a single year. This year, 10 colleges — mostly cosmetology and barber schools — hit those thresholds, so their students won’t be able to take out federal loans or receive federal grants unless they win an appeal to the department.

Also noted is the fact that while the default rate at public colleges held steady at 11.3 percent, the rates at private non-profit colleges and for-profit colleges edged up, from 7 to 7.4 percent and 15 to 15.5 percent, respectively. And, a more comprehensive look at the government’s portfolio shows millions of people hadn’t made a payment on approximately $144 billion in federal student loans for at least nine months as of June — a 12 percent increase in defaults from the previous year.

Are you ready to investigate your options with respect to your student loan debt? Call us, the San Diego Student Loan Lawyer, at (619) 295-3322 for a free initial consultation.

Student Loan Lawyer | Chris Bush
We have a new sister website dedicated to Student Loan Debt Resolution. Please visit San Diego Student Loan Lawyer for more information regarding options for management and settlement of your student loan debt.

Read 804 times Last modified on Friday, 06 December 2019 19:45
Chris Bush

With over 12 years of experience and thousands of cases as a consumer bankruptcy attorney, Chris Bush is on the cutting edge of Bankruptcy and Student Loan Law. Chris can assist you in untangling the options to find the best solution for your specific debt relief case.

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I had three choices: two large groups, or DebtDoc. I chose DebtDoc because of their numerous excellent reviews from clients as well as other attorneys. Also, I wanted someone to provide personal service and have a vested interest in my difficult student loan case.

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To whom it may concern,
DebtDoc's attorneys are extremely knowledgeable with the complexities of Federal Student Loans.
I went from a thriving career to full medical disability, ending with an SSDI placement. Unfortunately, I lost everything and became unable to continue making the student loan payments, so it was in deferment for over five years. When the SSDI settled I tried to negotiate an affordable payment plan with the loan holders but they refused my efforts, instead demanding over twice the amount I could afford.
I contacted DebtDoc and found them to be courteous, responsive and quick to assess my situation. They were sure they could help and took time to answer all questions, which relieved much anxiety. Within months they successfully resolved the debt! With much confidence, I highly recommend DebtDoc.
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Clients with Student Loan Debt

Clients with Student Loans

Some information I need to evaluate your Student Loan options is contained in your National Student Loan Data System Report. Instructions for obtaining this report are available on my web site at sandiegostudentloanlawyer.com/nslds-report. Simply print/save the reports as a PDF, of all pages. Please DO NOT "DOWNLOAD" THE REPORT from the link - this creates a text file that is very difficult to read; please print the web page as a PDF file - the summary page of all loans AND the individual reports for each loan. Samples of these pages can be viewed by clicking the respective links in the previous sentence. I look forward to reviewing this report with you and assisting you with the management of your Student Loan debt.

I have prepared a brief questionnaire for you to fill out to provide me most of the information I will need. Please click this questionnaire link and provide me with the information listed. I would also like to see copies of your most recent pay stubs or other income information.

My office is located at 2727 Camino Del Rio South, Suite 135-C, San Diego, CA 92108. The main entrance to the building is on the right/west side. I am on the first floor; when you enter the building, turn right and I’m in the suite at the second door on the left. If the suite door is locked, please call or text at 619-678-1134 and I will let you in. (Unfortunately, I usually can’t hear a knock at that door.) I look forward to meeting with you and assisting you on your path back to financial freedom.