Many have blamed the uptick in college costs and therefore student debt on administrative bloat, the idea that colleges are spending more on nonacademic staff and facilities.In addition, many 17-year-olds likely don’t understand what owing tens of thousands of dollars in loans will mean after they graduate.But regardless of life stage, size of loan, level of degree and other factors, student debt is a factor often in the back of borrowers’ minds.“It sticks with you every day,” Ian Foss, a policy liaison at Federal Student Aid, told the panel.It’s getting harder and harder to graduate college without taking on student loans.Nearly 70% of bachelor’s degree recipients leave school with debt, according to the White House, and that could have major consequences for the economy.The boom in for-profit college enrollment during the Great Recession has also served to boost aggregate levels of student debt and student loan defaults.
That means more students are going to school with less money to pay for it, resulting in an uptick in student debt.
It is designed to give borrowers a break who are struggling with their private student loans.
The exciting part of this program is that it applies to student loans.
Just 3% of borrowers with a graduate degree defaulted on their student debts, according to the Federal Reserve Board of Governors.
Borrowers’ experience with debt also varies by race and gender.