richardhutnik on 18 September 2010
Check this article out:
http://chronicle.com/article/Many-More-Students-Are-Defa/66223/
Looking at default rate between 10% and 40% (depends on where students go to school), which is nearly double the reported rate by the government, on the low end, if not much higher. This means people are not able to pay off their student loans and have to go into default. They end up still getting required to keep paying, with wages garnished (and no bankruptcy protection). A kicker here is there is a recover rate around 125% in the area of defaulted loans. In short, the system has defaulting being more profitable than not defaulting.
