The U.S. government stepped up collections on delinquent student debt to $2.9 billion last year — or an average of $1,000 from 2.9 million former students and their cosigners, according to the Treasury Department, Bloomberg News reported. And the trend continues: In the first six months of fiscal 2019, which started Oct. 1, collections totaled $3.3 billion. Graduating students are usually granted a six-month grace period before making loan payments. Hypothetically, a member of the Class of 2019 with $50,000 in loans would owe about $550 per month over the next decade — or $20 daily. (Assuming 6 percent annual interest and a 10-year term.) Read more.
The issue of student loan debt and bankruptcy is the first problem addressed in the Final Report of the ABI Commission on Consumer Bankruptcy. Click here to download your copy.
