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"More than 40% of Americans who borrowed from the government's main student-loan program aren't making payments or are behind on more than $200 billion owed, raising worries that millions of them may never repay.While it all sounds very shocking, the real eye-popper was buried deep in the text where it was most likely to be ignored. Here it is:
The new figures represent the fallout of a decadelong borrowing boom as record numbers of students enrolled in trade schools, universities and graduate schools.
While most have since left school and joined the workforce, 43% of the roughly 22 million Americans with federal student loans weren't making payments as of Jan. 1, according to a quarterly snapshot of the Education Department's $1.2 trillion student-loan portfolio." (More Than 40% of Student Borrowers Aren't Making Payments, Wall Street Journal)
"Carlo Salerno, an economist who studies higher education and has consulted for the private student-lending industry, noted that the government imposes virtually no credit checks on borrowers, requires no cosigners and doesn't screen people for their preparedness for college-level course work. "On what planet does a financing vehicle with those kinds of terms and those kinds of performance metrics make sense," he said." (WSJ)
Comment: More on the troubled plant: