Growing Number of Borrowers Are in Default
December 14, 2017
The federal student loan portfolio has grown to $1.37 trillion, according to the department, up from slightly more than $1 trillion four years ago.
On Thursday, the Center for American Progress released an analysis on student loan defaulters. The left-leaning think tank found that defaulters tend to borrow less than their peers. The median defaulter owed $9,625, according to the analysis, which is $8,500 less than the median loan balance for a nondefaulter.
Likewise, almost half (49 percent) of borrowers who default failed to earn a college credential, the center said, compared to the 10 percent who hold a bachelor’s degree.
Defaulters also are more likely to be from low-income backgrounds. The analysis found that nearly 90 percent of defaulters received a Pell Grant, while 70 percent are from families where neither parent earned a college degree.
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