Federal Student Loan Defaults Climb

Written by

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 | D.J. Rausa
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 106 times Last modified on %AM, %27 %100 %2018 %01:%Mar
D.J. Rausa

With over 21 years of experience as a consumer bankruptcy attorney, D.J. Rausa stays on the cutting edge of Bankruptcy and Student Loan Law which enables him to provide vital information to his clients.

Google+

www.debtdoc.com

Initial Free Consultation

  1. Your Name(*)
    Please let us know your name.
  2. Your Email(*)
    Please let us know your email address.
  3. Phone(*)
    Please write a subject for your message.
  4. Message(*)
    Please let us know your message.
  5. Invalid Input
  6. Enter Code
    Invalid Input

Thank you DJ!

I had no idea where to start with my bankruptcy and process. After my first meeting with DJ I felt confident that things were going to go well. He helped guide me through the entire process and time. 

He's very professional and courteous, thorough and extremely knowledgeable. 

I would recommend anyone that needs a bankruptcy lawyer/ student loans. 

Don't have a second thought when choosing DJ Rausa!

stars
Posted by a client - February 15, 2016

AVVO Lawyer Rating is Superb!

Respected Legal Source

D.J. Rausa interviewed by the Wall Street Journal for article on Bankruptcy and Student Loan Debt.

D.J. Rausa is recognized as a legal expert in Student Loan Debt Resolution and the associated Bankruptcy Laws.

Read what D.J. recently told The Wall Street Journal regarding the probable rise in Student Loan Debt Resolution through Bankruptcy.

Client Testimonial

To whom it may concern,
Mr. Rausa is 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 Mr. Rausa and found him to be courteous, responsive and quick to assess my situation. He was sure he could help and took time to answer all questions, which relieved much anxiety. Within months he successfully resolved the debt! With much confidence, I highly recommend Mr. Rausa.
Please contact me if you have any additional questions.
Sincerely,
 CJWaldenSignature
CJW
Websites with bunus at Bingo gbetting.co.uk/bingo games.