Re:Student Debt Payback Far Worse Than Believed
by projektfu on Thursday January 19, 2017 @08:01AM
(#13435389)
Things may be changing, but the recovery rates on defaulted student loans used to be 120%, meaning that the government was collecting an additional 20¢ on each dollar in default. This is in comparison to programs like SBA that have recovery rates around 50%. When you factor in an already high interest rate, this state of affairs is profitable.
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Re:Student Debt Payback Far Worse Than Believed
by antisthenes on Thursday January 19, 2017 @04:25PM
(#13439629)
Do you have a source for that? A 120% recovery on defaulted loans seems insane.
Re:Student Debt Payback Far Worse Than Believed
by projektfu on Monday January 23, 2017 @11:45AM
(#13463487)
I'm not sure what year I read that, or what article it was in, but after some cursory searching, in 2014, the recovery rate was 103-111%. Recovery rates are much higher in student loans because they cannot be discharged. So 120% is certainly not out of the question some years.
https://www2.ed.gov/about/overview/budget/budget14/justifica...
In FY 2016: 100-112% https://www2.ed.gov/about/overview/budget/budget16/justifica...