Nov. 26, 2014
Is the student loan problem the same as the student loan default problem? The data show that students who default on their loans within a few years after leaving school tend to have much lower debt levels. That means our one-size-fits-all policies toward student borrowers won't do much for those most in crisis -- the ones who enter default. Check out my latest post in The Hill here:
Though low-balance borrowers make up 52 percent of those with debt, they accounted for 84 percent of those in default. In fact, more than half of the low-debt defaulters borrowed less than $5,000 in federal student loans. Fewer than 5 percent of students had as much debt as the typical bachelor's degree-completer with loans in the survey.Read the full post here.