Monday, March 30, 2015
New Federal Data Show Student Loan Borrowers Suffering More Than Previously Believed
http://www.huffingtonpost.com/2015/03/27/federal-student-loans-delinquency_n_6957036.html DUE 6 APRIL 2015. What are the statistics regarding student loan debt? Who guarantees student loans?? What are the reasons for high student loan debt??? Most importantly, what are the back-end costs (or repercussions) of students not paying back their student loans????
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New federal data show student loan borrowers suffering more than previously believed. About one-third of borrowers with federal student loans owned by the U.S. Department of Education are late on their payments. Thirty-three percent of borrowers were more than five days late on one of their federal student loans as of Dec. 31. Some 41 million Americans collectively carry more than $1.1 trillion in education loans owned or guaranteed by the Education Department. While the Education Department ultimately guarantees the debts that are owned by banks and investors, it doesn’t release details about their performance publicly.
ReplyDeletePast figures based on both the number of loans and the dollar amounts of those loans from the department’s main student program suggested delinquency rates of around 20%. The back-end costs of students not paying back their student loans are that they will be unable to borrow additional loans and it can ruin the students’ credit. The new contracts created new metrics by which the Education Department would grade its loan servicers’ performance. They are trying to make changes to offer the best student loan experience possible.
The statistics regarding student loan debt shows that about one-third of borrowers that currently have federal student loans that are owned by the U.S Department of Education are now considered to be late on their payment dates. When focusing on the student loan data, the main group that guarantees the student loans is the U.S Department of Education itself which provides accuracy for the debts but the department does not discuss/release information to the public eye. For loans that it owns, the Education Department has previously publicized delinquency totals measured by number of loans and by dollar volume, but not by borrower. Past delinquency totals also only included loans that were 31 days late or more.
ReplyDeleteThe reasons for the high student loan debt can be traced back to previous large amount of loans that were accounted and recorded by the U.S Department of Education but were on late payments. For loans that it owns, the Education Department has previously publicized delinquency totals measured by number of loans and by dollar volume, but not by borrower. The back end costs of students that are late or not paying back their student loans will be unable to take out additional loans in the future which will negatively affect the individual's credit.
The statistics regarding student load debts are that 1 out of every three borrowers are considered late on their payments to the US Department of Education. Another statistic is that 41 million Americans owe a total of over 1 trillion dollars. The US Education Department is the agency that guarantees the loans. The reason for high student load debt is that the cost of education is so high that students have a hard time paying back their loans. Also, the unemployment ensures that they will not have the money needed to repay their loans. The repercussions of students not paying back their student loans are that they will not be able to borrow additional loans and that the debt can ruin their credit score and increase costs.
ReplyDeleteThe statistics regarding student loan point to a failure by the loan services. Currently some 41 million Americans owe 1.1 trillion in funds to the education department. While this occurred the main student loan program lagged behind by 20% compared to other student load services which ranged above 26%. The United States department of Education is the organization that guarantees these loans. Students have a hard time paying back there loans on time and accumulate more and more debt because the cost of college education increases which causes the student to have a hard time . making repayments towards the loan.
ReplyDeleteThe backend costs of this dilemma is that as students are unable to repay debt interest rates rise on student loans which causes future students to pay even more money to the system which begins a vicious cycle. Obama and other politicians are currently working out a plan of action to ease the pressure on the student and adjust the payment schedule according to wages earned and income.
The statistics regarding student loan debt is even worse than what was previously believed. Currently, 1/3 of borrowers are late on their payments and about some 41 million Americans carry more than $1.1 trillion in education loans owned. That number is right behind the consumer credit for home mortgages. Some of the borrowers (about 17%) are behind by 3-12 months.
ReplyDeleteThe U.S Department of Education is in charge of student loans. A main cause of the student debt is the increasing costs of higher education for many borrowers. Over time, this debt tends to add on as students are unable to afford each payment on time. The repercussions of not paying back the debt are the increasing interest rates for loans, accumulated debt, and even the borrower's credit scores taking a hit.
Regarding student loan debt, the statistics are that there are 41 million Americans who collectively owe $1.1 trillion in debt. About one-third of all borrowers are late on their payments. The United States Department of Education guarantees student loans. The reasons for high student loan debt are skyrocketing costs for higher education and students being unable to make their payments and thus accruing interest as time goes on.
ReplyDeleteThe repercussions of students not paying back their student loans are more interest which leads to higher payment. Loan payments take away from a households money which decreases their buying power in a time when wages are already stagnating. Late payment of loans can also make it harder for students to get future loans, credit cards, or any type of financial assistance.
The statistics regarding student loan debt are that 41 million Americans have a combined debt of about 1.1 trillion dollars, which is more the consumer credit for anything else except mortgages. The percentage of people who are struggling to pay back their debts is even higher than anticipated and may be as high as 37% for some companies.These loans are guaranteed by the Department of Education. The Department of Education wants this value to drop and is offering $200,000 to any company that gets it under 23%. Students have these high debts because education costs continue to rise. Students are unable to afford the education without the loans and then they must get jobs to repay the loans. If these students were to pay their debts, it would decrease the purchasing power of millions of Americans and hurt the economy. If they do not pay their debts, the interest will continue to build and they may be unable to secure other loans to buy things such as homes. If people are unable to afford these goods, it will also hurt the economy.
ReplyDeleteAccording to new federal data by the Department of Education, about one third of borrowers with federal student loans are late on their payments by 5 or more days. The Department of Educations backs up the roughly $1.1 trillion dollars in student loan debt by about 41 million Americans.
ReplyDeleteAccording to this article, the reason that federal student loan debt has ballooned to such epic proportions is that the Department of Education has bad management in dealing with loan companies. This article makes the claim that loan companies and the DOE are not doing enough to help former students; they only simply aim to collect payments, without offering flexibility and customer service support. Call me crazy but I would place the blame on the actual debtors that fail to pay back their loans.
Because students are not paying back their loans, the interest from their overdue payments are accruing. This accumulation of interest will take a larger and larger chunk of their disposable income, thereby reducing aggregate demand and slowing down the economy. In addition, many of these loan servicing companies will surely suffer as a result of the backup of loan payments.
The statistics regarding student loan debt are that roughly 33% of borrowers were more than five days late on one of their federal student loans as of Dec. 31 and around 41 million Americans collectively carry more than $1.1 trillion in education loans owned or guaranteed by the Education Department. Student loans are guaranteed by the education department. There is a high student loan debt because the costs of education is increasing and students are not able to repay their loans once they finish college. The education department’s main program had a 17% delinquency rate compared to only 6% of the Federal Reserve. This growing student loan debt will present many problems to the economy if it is not dealt with in the near future. According to the article “groups ranging from federal financial regulators and Federal Reserve policymakers to chief executives of banks and other industry groups have warned about the increasing risk that student debt poses to U.S. economic growth, noting that debt burdens are sapping households' purchasing power amid an era of stagnant inflation-adjusted wages.” Ultimately the former students suffering from this debt will have less money to spend so the economy will slow and decrease.
ReplyDeleteIn regards to student loan debt, about 33 percent of all people who take out a student loan are at least 5 days late on one of their federal student loan payments. Collectively, 41 million Americans carry more than $1.1 trillion dollars in education loans owned or guaranteed by the Education Department. In addition, it was stated by the Education Department that the delinquency totals included loans that were 31 days late or more. The U.S. Education Department guarantees student loans. The main reason for high student loan debt is because of the higher education prices such as rising tuition prices for college students who needed to take out a loan. With this, students are having a difficult time paying back these larges loans they have taken out. When students aren’t able to pay back their loans they will not be able to take out more loans in the future until the current ones are paid off.
ReplyDeleteThe statistics are significant because they show that one third of student loan borrowers are late on their payments, and total loans are up to 1.1 trillion dollars. The problem is that education costs are increasing, students are not able to pay off their loans when they get out of college, and the DOE is just collecting on payments, not helping out the graduates. Since the graduates are not paying back their loans, their total debt is increasing overall. This increasing debt will cause a higher percentage of graduate's income on debt payment, causing a decrease in demand because their is less disposable income in the markets.
ReplyDeleteThe statistics regarding student loan debt show that about one-third of borrowers that currently have federal student loans that are owned by the U.S Department of Education are now considered to be late on their payment dates. Thirty-three percent of borrowers were more than five days late on one of their federal student loans as of Dec. 31. Some 41 million Americans collectively carry more than $1.1 trillion in education loans owned or guaranteed by the Education Department.
ReplyDeleteThe people that guarantee student loans are The US Education Department. Those rascals. The reasons for high student loan debt, besides the outrageously high cost of a college education, is the high interest rate and people just cant keep up with the payments plunging them further and further into debt and crippling depression because their lives are meaningless. Just lie on your FAFSA, man. There are oh so many repercussions. For example, you can get like a bad credit score and you cant buy things like a house. Plus the graduates will spend a large portion of their income on paying off debt, which makes it so that graduates cant put money back into the economy thus slowing the economy and plunging us into a greater recession.
The statistics regarding student loan debt show that about one third, of the two thirds, of student loan debt owned by the US Department of Education are now considered to have been made late. This figure is much higher than the figure previously reported when they would only consider late payments as 31 days or longer, but now it is measured as 5 days or later. The reason for high student loan debt are increasing education costs, high inflation and stagnant wages. Wages are staying the same while inflation is pushing the cost of living up tremendously. This is leaving less and less money for people to use to pay their bills and loans. This is why people are pushing for the loan repayments to be renegotiated between the students and federal government. They should be repaying the debt with a reasonable amount that is within the borrowers monthly budget based on what they make a month. The repercussions of borrowers not paying their student loans off would be the economic situation worsening because taxes would then increase to cover all the money lost from people not paying the government back, this would then take more money out of households and this could have been money spent on goods and services to help stimulate the economy. People would also wind up with terrible credit scores, stopping their plans of borrowing money for a car or house later in their lives. Also, the youth of the future may not be able to borrow money for education from the government later on because if no one is paying back their loans why would the government continue giving out these loans. This would then deplete the amount of people receiving an education and our nation would essentially be dumber.
ReplyDeleteStatistics that regard the student loan debt prove that about a third of student borrowers that take out federal student loans owned by the U.S. Department of Education have not yet paid back their loans. This third of student borrowers have been over 5 days late on their federal student loans ever since December 31st. The U.S. Department of Education is the main source that guarantees students with student loans and even though they usually give out loans, yet they do not state the severity of their delinquency totals.
ReplyDeleteSome reasons for these high student loan debt would be the fact that higher education costs for higher levels of education and students not having the capability of paying back these debts in time lead to them acquiring interest that is added on over time. Students that take out loans and are not able to pay it back or pay late payments decreases their consumer buying power and their ability to take out future loans for necessary things such as for a car, house, or even credit cards.
The statistics regarding student loan debt show that about one-third of all borrowers are late on their payments.The US Education Department is the agency that guarantees the loans. The reasons for high student loan debt, besides the outrageously high cost of a college education, is the high interest rate and people just cant keep up with the payments plunging them further and further into debt and crippling depression because their lives are meaningless. The back-end costs of students not paying back their student loans are that they will be unable to borrow additional loans and it can ruin the students’ credit.
ReplyDeleteApproximately 1/3 of federal student loan borrowers from the U.S Department of Education are considered late on payment days by at least 5 days. The group that guarantees loans is the U.S Department of Education itself, though the group doesn’t discuss this information with statistics for the general public. It doesn’t go by the individual borrower, but by a sum of both number of loans and dollar volume. Borrowers are kept out. Life is pointless. Past delinquencies included loans 31 days late, different than the current statistic which is 5 days late. There is also a pool of borrowers not included in the statistics, making for a large margin of error.
ReplyDeleteHigh loan debts all trace back to the large amount recorded by the department on late payments. These “back end costs” are caused because students are unable to take out any further loans which negatively affects one’s credit. This means that the poor consequences of bad credit by not paying a loan will affect a person’s ability to continue with an education or pursue future investments.
In the recent statistics regrading student loans have shown that late payments on on the rise by as much as 33% and student debt has surpassed 1.1 trillion dollars. The main cause of this extreme debt falls on the shoulders of the Department of Education. They guarantee student loans, but do not offer any flexibility on the loans making it easy for people to fall behind on payments. The consequences of people not paying back their loans and going into debt are terrible. First it would lead to graduates having a bad credit score which will keep them from buying things that spur the economy greatly like houses. Loan compaines will also be less willing to give out student loans if they are not being paid back which will lead to less people with college degrees and also many people will see the debt and choose to rather than go to college to instead go to trade schools which will lead to an oversupply of tradesmen.
ReplyDeleteThe statistics regarding student loan debt shows that about one-third of borrowers that currently have federal student loans that are owned by the U.S Department of Education are now considered to be late on their payment dates. When focusing on the student loan data, the main group that guarantees the student loans is the U.S Department of Education itself which provides accuracy for the debts but the department does not discuss/release information to the public eye.
ReplyDeleteAlso, the youth of the future may not be able to borrow money for education from the government later on because if no one is paying back their loans why would the government continue giving out these loans.
Study's show that the student loan debt is a lot worse that previously speculated. The sum of the United States unpaid student loans sums is up words of 1.1 trillion dollars. The knighted states department of education guarantees student loans. Loan interest rates are extremely high because of failure to pay them back! They need to composite for the unpaid loans buy upping the interest. With the loans being unpaid there is a lees chance student will get new loans menacing loss in human capital slowing growth.
ReplyDeleteStatistics regarding student loan debt are: About one-third of borrowers with federal student loans owned by the U.S. Department of Education are late on their payments, Another statistic is that 41 million Americans owe a total of over 1 trillion dollars, which is more the consumer credit for anything else except mortgages.
ReplyDeleteThe US Education Department is the agency that guarantees the loans.
The reason for high student load debt is Students have these high debts because education costs continue to rise. Students are unable to afford the education without the loans and then they must get jobs to repay the loans.When students aren’t able to pay back their loans they will not be able to take out more loans in the future until the current ones are paid off. The government will sooner or later begin to have restrictions on giving loans.
The statistics regarding student loan point to a failure by the loan services. Currently some 41 million Americans owe 1.1 trillion in funds to the education department. While this occurred the main student loan program lagged behind by 20 percent compared to other student load services which ranged above 26 percent. The United States department of Education is the organization that guarantees these loans.
ReplyDeleteThe reasons for the high student loan debt can be traced back to previous large amount of loans that were accounted and recorded by the U.S Department of Education but were on late payments. For loans that it owns, the Education Department has previously publicized delinquency totals measured by number of loans and by dollar volume, but not by borrower. Students will unable to pay debts and it can effect in a negative way.
According to newly released federal data, student loan debt is significantly worse than we were originally led to believe. About one-third of federal student loan borrowers are late on their payments. As of the end of last year, around thirty-three percent of borrowers were more than 5 days late. 1.1 trillion dollars have been lent to 41 million Americans in education loans or guaranteed by the government's education department. Roughly 17% are behind by anywhere from a 3 months to a whole year. These numbers lie just behind the consumer credit for home mortgages. Economists and average Americans alike are blaming the high debt on the increasing cost of higher education in the American school system. On top of those struggling numbers, by factoring in the strength of unemployment’s effect on America’s budget, there is guarantees that many citizens will not be able to pay back their debts. There are severe repercussions based on the impact of this data. Not only will this affect those hoping to take out student loans themselves to pursue an education, but those who cannot pay back their debts now have serious slashes taken to their credit scores as well as no longer being able to take out further loans or available cost decreases. This is causing the beginnings of a vicious downward cycle. Politicians are currently working on a plan to ease the tension and pressure of this situation on future students. If future students are incapable of taking out loans and pursuing further education this prevents spending for them because they are earning less at their future jobs. When they spend less the government and the rest of the country further suffers.
ReplyDeleteRegarding student loan debt, the statistics are that there are 41 million Americans who together owe $1.1 trillion in debt. A third of all borrowers are usually late on their payments. The United States Department of Education requires that students take out student loans. The reasoning for high student loan debt are the fact that costs for higher education are increasing and most students are unable to make their payments which leads to a cluster of debt owed.
ReplyDeleteWhen students are unable to pay back their student loans, the consequence is a higher interest rate, which leads to an anticlimactic higher payment. The burden of loan payments puts a financial stress on households which decreases the amount of money they are willing to spend. This along with wages that are already stagnating does not help the cause. Consequences are also given out for late payments towards loans. This creates a later problem when a student is ready to develop their credit scores through modes of loans such as credit cards, or any type of financial planning they may have planned.
People are morons. Yes weeducate 100% of people, and yes we have a very good infrastructure when talking about education and yes we lead the world when it comes to universities, having some of the most prestigious universities on the planet, and yet we educate our students by having them pay for college with loans. This is so idiotic, not vecause the loans are inherently bad, but because the ssystem is bad. The new statistics say that 33% of people with student loans are more than five days ;ate paying them. how does it make sense to educate people, invest in students, make great human capitol, and drown that investment in debts. It is like buying a boat and letting it sink. We need better help. We need better infrastrocture. The government needs to spand less on defense and on wars overseas thta aren't even real wars, and concentrate on making our nation not the hub where the smartest nations send their children to study, but to make Americal the best, most educated nation in the world. And quite frankly, I think the biggest gap in this is the American idea of making everyone study, the general concept that you need to study to be successful. Studdying is not for everyone, and quite frankly im sure many kids are forced into studies while they would be better off as part of the work force. This way im sure we'd save some tax payer money (addressing the original topic, by the way, this is what backs student loans) that we could spend on grants and on scholarships for people who are really in need of it.
ReplyDeleteThe statistics regarding student loan debt shows that about one-third of borrowers that currently have federal student loans owned by the U.S Department of Education are now considered to be late on their payment dates. Also 33% of borrowers were more than five days late on one of their federal student loans as of Dec. 31. The US Education Department is the agency that guarantees the loans. The reasons for high student loan debt are increasing education costs, inflation, and stagnant wages.
ReplyDeleteStudents that take out loans and are not able to pay it back or pay late payments decreases their consumer purchasing power and their ability to take out future loans. This will cause a severe increase in the gap between the middle and upper class.
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ReplyDeleteRoughly 33 percent of borrowers with federal student loans owned by the U.S. Department of Education were more than five days late on one of their federal student loans as of Dec. 31. The Education Department ultimately guarantees the debts that are owned by banks and investors.
ReplyDeleteHigh student loan debt can be attributed to increased tuition costs, governmental initiatives to encourage funding for higher education, and a tendency by recent graduates to seek a second degree if they are unable to find a full-time job, Additionally, variable interest rates can accumulate to hundreds of thousands of dollars of debt that was taken for a much smaller loan.
The repercussions of students not paying back their loans include losing paychecks, tax refunds, or even a portion of that student's Social Security. It can also ruin someone’s credit, making it difficult to buy a house or car in the future. For the society, people who don't pay off their loans are only making it more difficult for the next generation by raising their costs and slowing down the economy.
Statistic shows that a combined forty-one million Americans have a student loan debt of about one trillion dollars, which appears to be a majority of consumer credit. Many struggle to pay back this debt, with a percentage higher than ever expected. The current percentage of people attempting to pay back their debt is about 37%. However, since these loans have a guarantee courtesy of the U.S Department of Education, they are offering a heavy reward of $200,000 to any region that will bring this number underneath 23%. Education costs continue to rise as the years go by, making it harder for people to pay their student loans. Because they cannot afford an education, they will have to go work to pay off their loans. By not paying off their loans, total debt is increasing. Now there will be a higher percentage of graduates whose main focus will be to pay off their debt, therefore spending their income to pay it back, which causes a decrease in demand for other items such as cars, or homes, since they cannot afford to get these items unless they pay back their debt.
ReplyDelete
ReplyDeleteThe statistics in respect to student loan debt show that about one third, of the two thirds, of student loan debt owned by the US Department of Education are now considered to have been made late. This figure happens to be extremely higher than the previous figure reported when they used to consider late payments as 31 days or longer, but now it is measured as 5 days or later. The reason for this high student loan debt is simple. It's due to increasing education costs, high inflation and stagnant wages. Wages are staying the same while inflation is pushing the cost of living up respectively as well as unfortunately. This of course leaves less money for people to use to pay their bills and loans. This is why people are pushing for the loan repayments to be renegotiated between the students and federal government. The borrower should be expected to repay the debt within a reasonable amount in respect to their monthly budgets; something that is seemingly reachable and more "cost effective." When the borrowers don't pay off their student loans off the economic situation worsens because taxes then increase to make up for all the money lost from people not paying the government back, this would then take more money out of households; money that probably could've went elsewhere, for goods/services that could stimulate the economy. People would also end up with terrible credit scores, stopping their plans of borrowing money for a car or house later in their lives, if they so chose. Also, the youth of the future may not be able to borrow money for education from the government later on because if no one is paying back their loans why would the government continue giving out these loans. Education is a powerful resource; it serves as an essential and vital part in making this country run smoothly and efficiently. Without it, we wouldn't have the mind or the ideas to carry out and we would stay stagnant, or worse dumber.