What do we know about student debt? Or what do we not know about student debt would be a more pertinent question – with our [...]
What do we know about student debt? Or what do we not know about student debt would be a more pertinent question – with our [...]
What do we know about student debt? Or what do we not know about student debt would be a more pertinent question – with our current data, we are unable to answer basic questions about student debt and therefore unable to help borrowers before they spiral into default. The Education Department releases only high-level summary statistics, which does not allow for effective problem-solving at the individual student level. In contrast, the consumer bureau publishes extensive information about mortgages, lenders, and borrows that is crucial to preventing another mortgage crisis.
On the flip side of it all, student loan collection firms are controversially aggressive and have ruined some families financially. Collection agencies charge significantly higher interest rates than similar federal programs and can employ tactics such as garnishing wages, seizing tax refunds, and revoking professional licenses, all without court judgment. Borrowers are given few breaks, even when facing disability and death. Responsible student loan programs must address the needs of the most vulnerable borrowers.
