The Fall semester has begun at colleges and universities across the nation. Unfortunately, the volume of defaulted student loan accounts has risen. The Higher Education Services Corporation (HESC), which services Federal college loans, now reports that there are nearly 145.5K student accounts in default, totaled more than $1.98 BILLION in defaulted debt.
According to experts, new graduates can’t get jobs. And student loans are one of the most “highly collectible” forms of loans. Unlike student auto loans, they cannot be discharged in bankruptcy, and Federal loans can be collected via wage garnishment or reduced tax refunds. The world of higher education has a real problem on its hands. US families simply aren’t accruing enough assets to pay for the modern-day cost of a college education.