from Silver Vigilante:
Student debt loans spell a certain collapse for the US. Now over $1 trillion, the only industry the loans are helping is debt collection. There is a proverb which reads: “a little bit of debt is the borrowers’ problem, while a lot of debt is the lenders.” And student loans represent a lot of debt. The percentage of student borrows who defaulted on their federal student loans within two years of their first payment jumped to 9.1% in fiscal year 2011, up from 8.8% the previous years, according to Department of Education data released Friday. Therefore, of the 4.1 million borrowers required to begin payments on their student loans in the 12 months prior to October 2010, 375,000 defaulted before September 2011. A borrower falls into default upon missing payments for 270 consecutive days. 13.4% of borrowers defaulted within three years of their first payment, according to the first three-year report published by the Department of Education. Starting in 2014, the Department will release solely three-year rates. 218 colleges and universities nationwide had three-year default rates of more than 30%.