If you take out $30,000 in loans for that x-Studies degree, and can only work at Starbucks, then you will living in your parent’s basement until you are in your 40s.
I have zero sympathy for students that take out loans for degree programs with no employment opportunities upon graduation.
Student loan defaults rising, study finds
UPDATED: TUESDAY, MARCH 14, 2017, 9:52 A.M. The stock market is up, unemployment is down but things aren’t rosy for all Americans. A new analysis of government data by the Consumer Federation of America found that the number of Americans in default on their student loans jumped by nearly 17 percent last year.
Here are the ugly numbers:
As of the end of 2016, there were 4.2 million Federal Direct Loan borrowers in default, meaning they’ve not made a payment in more than 270 days. That’s up from 3.6 million at the end of 2015.
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As of the end of 2016, 42.4 million Americans owed $1.3 trillion in federal student loans, according to the U.S. Department of Education data. This doesn’t include borrowing through private student loans, credit cards, and home equity loans to finance the growing costs of college.
The Federal Reserve System puts the measure slightly higher at $1.4 trillion, as it includes private loans as well.
Defaulting on a federal student loan can be a financial disaster for the borrower. Unlike other types of debts, most federal student loans cannot be discharged in bankruptcy. Those who go into default face serious repercussions including wage garnishment, damaged credit scores and potentially added costs in fees, interest and legal fees.
Student debt has risen along with the cost of education, which makes repayment difficult. The average amount owed per borrower rose to $30,650 in 2016, after rising steadily for years. In 2013, borrowers on average owed $26,300.