Student debt by definition is money that has been borrowed through loans for educational expenses. Although with the rapidly rising cost of college tuition, fees, books, supplies, and other costs associated with attending college, it has made obtaining student loans the only option to pay for college. Most federal student debt in the United States is servcied by Sallie Mae.
As of 2010, total student loan debt surpassed total auto loan and credit card debt for the first time in history.
Yes, in fact, the Consumer Financial Protection Bureau in 2013 released a report estimating that more than one-quarter of working Americans are eligible for the Public Service Loan Forgiveness Program. While the Public Service Loan Forgiveness Program is relatively well know, there are some lesser-known programs that are available as well that may help you pay down your student debts.
Currently there is a delinquency rate of 15 percent for all student loan borrowers implies a delinquency rate of 27.3 percent for borrowers with loans in repayment.
- Federal Reserve Bank of St. Louis
Average Graduate Debt
Americans in Debt
Failing to repay and ultimatly defaulting on federal student loans will land you with harassing debt collectors, wage garnishment, and the loss of your tax returns. While that's not enough, your credit will be in ruins making it nearly imposible to rent an apartment, use a credit card, buy a car, or own a home.