Jillian Berman writes for Market Watch:? Government Garnishing Student Loan Debt
between October 1 and December 31, 2015, private business collection agencies companies hired by the Department of Education garnished greater than $176 million in wages from defaulted student loan borrowers in order to pay back debts they have accrued, according to data released yesterday.
I know there is over $1.3 trillion of education loan debt out there, and scores of borrowers, but this has to put a boulder sized hole within the budget.
Still, the sheer size the pot taken from borrower\’s wages is \”horrifying\” said Chris Hicks, an independent researcher who focuses on student debt. \”These are folks who can\’t afford to pay their student education loans and they\’ve garnished $176 million in ninety days from them,\” said Hicks, who also functions as a consultant for progressive organizations. \”You must wonder what conditions people are living in when they\’re seeing that high of their wages garnished.\”
Gee, using the folks who talk to me, THEY LIVE IN THEIR PARENTS’ BASEMENT!
OK, sorry for shouting there.
More damn student loan statistics.? All the income based repayment plans (for government school loans ONLY)
are being used by lots of people, and the latest program, maxing payments at 10% of income, is, of course, supposed to help, all the more!
borrowers who should be making payments on the loans, but are defaulting instead, hit its highest level in several years last quarter, according to an analysis of the data released last week by Jason Delisle
What comes about when the economy gets worse?? Famed investor Jimmy Rogers states -there-s-a-100-probability-of-a-u-s-recession-within-a-year.
Hmm.? Lemme guess.? More and more people go into default on their education loan debt, many for a second time, which
it appears that hundreds of thousands of borrowers are entering default for any second time each quarter the Department measured. Borrowers who default over and over again on their federal student loans have limited choices to become current on their payments and acquire their financial lives back to normal.
So, yeah, watch out for those statistics that mention less student loan debt not being in default.
Because much of it is in forbearance, without having any payments due, or, while in the income based repayment plans, which, IF SUCCESSFULLY COMPLETED, frequently pay no all of the student loan debt owed.