Some people who default on their student loans do try to pay them off for years or even decades before they realize they can’t make that payment. It’s just such a long-term process that they may have had high hopes of paying at the beginning, before seeing that dream fall apart.
But this is not true for all students. According to one report, 11% of students who recently graduated from college default on their student loans within the first year. They’re not spending an extensive amount of time trying to pay. They are essentially just graduating and deciding almost immediately not to pay those loans back.
Other important statistics to consider
It’s not just the speed of these defaults that can be a problem. You also want to consider how much debt is being defaulted on all the time. Here are a few statistics that can make it clear:
- Out of all the student loan debt in the United States, 7.8% of it is in default.
- The average amount that is in default at any time is even higher, at 15%.
- This means that there is a total amount of defaulted student loan debt that comes in at about $124 billion.
- Every year, more than 1 million new students default on their loans
If your company provides student loans in an effort to help people get an education, it can be very frustrating to have them quickly default on those loans and fail to pay them back. As you can see, this is becoming an even bigger problem every day, and it will continue to get worse if the United States enters a recession. Is very important for you to understand exactly what steps you can take to attempt to collect on the debt that you are owed.