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LeeMarie
By
November 01, 2018

Together We Can End Student Loan Default

Student loan borrowers are all around us. They come from many different neighborhoods, backgrounds, alma maters and demographics.

 

And several of them have one thing in common: the need, at some point in their lives, to default on their student loan payments.

 

Financial pitfalls aren’t a certainty, but a commonality amongst many of the more than 44 million borrowers who are currently paying down $1.4 trillion in student loan debt.

 

In an August 2018 study conducted by the Urban Institute, researchers collected a wide array of data that identified the various faces, cases and scenarios behind student loan default.

This included the relation of those borrowers to credit bureau scores, the frequency of defaults based on the balance of the loans, the overall likelihood of defaulting, and numerous thought-provoking data points, all of which illuminate the fact that many of us are in this together.

 

Some of the report’s key findings:

  • 40% of student loan borrowers may default on their student loans by 2023
  • 250,000 borrowers default on their federal student loans each quarter, with an additional 20,000 to 30,000 defaulting on their rehabilitated student loans
  • 32% of borrowers with a balance of $5,000 or less defaulted at least once within four years compared with 15% of borrowers who owed more than $35,000

 

Using the LEAF platform is one way to ensure the option to default remains a distant possibility. Borrowers who used LEAF to pay just $45 more on their loans each month were debt free three years faster and saved $2,500 in interest costs.

 

To read the full report from the Urban Institute, click here.

 

Click here to do the math for your organization, how much turnover money could you save by offering comprehensive benefits?

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