I was talking to my brother last night and he said he has read that student loans have a 90% default rate. this seems a little high to me. Can anyone tell me what a more common default rate is and what the penalty for defaulting is?
http://www.ed.gov/news/pressreleases/2003/09/09162003.html
where the hell did he get 90%?
He may have been talking about a specific school. It’s pretty hard to default on student loans today. They got it tied into IRS. Some schools earned notorious reputations for loaning money to people who never repaid. Part of the reason being they never graduated. Or, if they did graduate, their degree was worth little or nothing.