Florida Student Loan Default Rate Above National Average

Nationwide, the total student loan debt of $913 billion is more than total credit card debt. While those who are in credit card debt have options such as bankruptcy to get out of that debt, student loan borrowers do not; Florida students and recent graduates are feeling the financial pressure of student loan repayment. In this difficult job market, nearly two-thirds of graduates throughout the United States are in debt after finishing college. Many are unable to find a job at all, let alone one that will allow them to make payments on student loans. Nationally, an average of 7 percent of student borrowers defaulted on loan payments last year; 8.5 percent of Florida borrowers were unable to pay their student loans. With the national rate of default raising to almost 9 percent already this year, student loans continue to be a growing problem. Defaulting on, or not paying, a student loan can have drastic consequences. To collect on the debt, the government is able to: Garnish wages once a defaulting borrower does get a job Take money out of any federal income tax refund or Social Security payments Prohibit borrowers from entering military service Disallow receipt of a professional license Student loans are, for the most part, non-dischargeable in bankruptcy and will stay with the borrower until he or she pays off the loan. A borrower may have options for bankruptcy relief, however, if he or she has other debt, such as credit card debt or a mortgage that may be dischargeable in bankruptcy. Freeing up the money that was used to pay the dischargeable debts may allow him or her to...
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