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Thanks well the importance of education and expected to be stressed -- tomorrow -- -- the union.
But with Republicans giving a big -- down on the idea of any new stimulus spending.
-- -- president say anything about the rising defaults on student loans following this story for us from Washington also -- parents hi Peter.
Why Lory student lending has skyrocketed.
As more people go back to school.
-- -- unemployment so high out there closing in on 700 billion dollars in federal student loans which is most.
Of the student lending market but experts say.
Don't worry about it we probably won't hear much from the president about it tomorrow night.
Despite the fact that with a high unemployment and other challenges loan defaults have jumped sharply.
They are now about 58 billion dollars in federal student loans in default up from 33 and a half 1000000004 years ago.
Official default rates have risen from about 5% five years -- go to more than 7% now.
This is the highest -- we've seen in eleven years.
And there isn't any indication it's going to be going down anytime in future.
Now according to the Chronicle of Higher Education loan defaults for students who graduated in the mid 1990s.
-- for -- percent to 40% now but market can't throw away -- of the scholarship website fast web dot org says.
Don't worry about it first government student -- contractors are very aggressive about chasing delinquent students.
You can't get rid of a student loan -- -- in a bankruptcy proceeding for example and the government can and does garnish wages to get repaid.
Even garnish -- Social Security benefits to get that money back for the taxpayers also the government charges very high interest rates on student loans about 7% right now.
And it borrows money for the treasury at very low rates may be water 2% and charges -- -- all these -- so the government is making good money off of student loans according to camp -- enough to cover net losses can't towards estimates the government actually makes a profit right now.
Of about five billion dollars a year on student lending.
-- -- Thanks for unpacking that went forest that's so interesting Peter thank you I know a lot of colleges never always raising tuition as well right that's the other side of category.
Yeah I actually went back to school on this on all these numbers it's pretty complicated.
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