Loan Repayment

New in Feb. 2015 - The Department of Education will lend about $100 billion to millions of students across the country this year. Without major reductions in college costs, the majority of students will continue to depend on loans to pay for at least part of their postsecondary education, and the majority of those borrowers rely on the federal student loan program. We face a troubling reality however, that about a fifth of new borrowers will default at some point during repayment.

Of course, for many students, taking on a moderate amount of debt to earn a degree that substantially increases lifetime earnings is a responsible choice. For example, the average graduating college senior who borrows to attend a four-­‐year public school currently leaves with $29,400 in loans, but will earn an estimated $650,000 more over the course of her career due to that credential. It’s undeniable that higher education is a wise investment-­‐ but why do so many borrowers run into problems repaying their debts?

  • Publication Date : 2/9/2015
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