As you may have noticed, in recent days, there have been numerous news stories highlighting the negative aspects of student loan debt. Student loans have consistently made national headlines, with stories that have highlighted their overwhelmingly complex nature, government attempts at reforming them and wildly complicated repayment terms. Although the student loan industry is in dire need of improvement, student loans actually have many characteristics that are quite positive – but they seem to have been overlooked on a national Continue reading
Category Archives: Student Loan Default
Wage Garnishment? Here’s What to Do
Fact: The U.S. Department of Education can garnish up to 15% of your wages, as a way to recover the money you owed on a defaulted student loan. Nobody wants to be in the position of having their wages garnished, but if you are, there is still plenty you can do to get your student loans (and credit) back in good shape. Steer Clear of Debt Relief Agencies For starters, avoid any debt relief agency that claims they Continue reading
How many borrowers Default on their Loans? (cohort default rates)
Have you ever heard of the phrase, cohort default rate? If you haven’t, don’t worry — most people haven’t. A cohort default rate is the percentage of a school’s borrowers who’ve entered repayment on certain federal student loans (during a federal fiscal year) and defaulted on them before the end of the next 1 – 2 fiscal years. This means that, some time after graduating, a chunk of most school’s borrowers are defaulting on some of their federal student loans – every single year! Continue reading