Student Loan Default
Student loan default is a situation in which a borrower fails to make payments on their student loan debt. Defaulting on a student loan can have serious consequences, including damage to the borrower’s credit score, wage garnishment, and even legal action. It is important for borrowers to understand the risks associated with defaulting on a student loan and to take steps to avoid it.
History of Student Loan Default
Student loan default has been a problem since the introduction of student loans. In the United States, the first student loan program was established in 1958, and since then, the number of borrowers has grown significantly. As of 2019, there were more than 44 million borrowers with outstanding student loan debt, and the total amount of debt was estimated to be over $1.5 trillion. As the number of borrowers has grown, so has the number of defaults. In 2018, the default rate was 11.5%, meaning that more than 5 million borrowers had defaulted on their student loans.
Table of Comparisons
| Year | Number of Borrowers | Total Debt | Default Rate |
|---|---|---|---|
| 2019 | 44 million | $1.5 trillion | 11.5% |
| 2018 | 43 million | $1.4 trillion | 11.5% |
| 2017 | 42 million | $1.3 trillion | 11.2% |
Summary
Student loan default is a serious issue that can have long-term consequences for borrowers. It is important for borrowers to understand the risks associated with defaulting on a student loan and to take steps to avoid it. For more information about student loan default, borrowers can visit the websites of the U.S. Department of Education, the Consumer Financial Protection Bureau, and the National Student Loan Data System.
See Also
- Student Loan Repayment
- Student Loan Consolidation
- Student Loan Forgiveness
- Student Loan Refinancing
- Student Loan Interest Rates
- Student Loan Debt Relief
- Student Loan Servicing
- Student Loan Counseling
- Student Loan Debt Collection
- Student Loan Default Rates
