The Student Loan 2012 Statistics show that delinquency is decreasing and that Student Loan Bankruptcy is not the problem? About 50% of the people that try to get their student loan debt reduced have some success at it according to two studies published over the last 3 years. In 2012 a survey reported that since 2010 the amount of Debt has gone up about 25% for graduates and their incomes have gone down 10%. From 2008 to 2012 the amount of student loan debt for parents jumped from 75% for their parents who borrowed an average of 34,000 to help.

An average of over 25,000 was owed on student loan debt and debtors age 37-49 owed about 37,000 or 47% more. About 40% of all student loans are in default or not being paid on such as being in forbearance or deferment. Although the Chronicle of Education puts the default rate in the 20% range it is completely in conflict with the government’s own accounting reports which have consistently reported much higher defaults.

Most Student loans are granted with no review on whether the person or the education being provided has any ability to repay. Both private and Governmental loans use collection agencies to collect. However the government loans allow garnishments without the need of first getting a judgment and without any restrictions that other creditors have in state court.

Student Loan Historical studies

Although Student loan bankruptcy at one time had no restrictions, at no time in history have students bankrupted their student loans at a rate over 1%.   Historically student loans were discharged in bankruptcy at a lower rate than other filers. Historically 25% of the four year degree students defaulted, 35% of the 2 year degree students defaulted and about 45% of the private for profit business schools are in default according to the cohort rates for student loans. Private loans have a much higher rate of default than governmental loans and the private student loans almost always have adjustable rates. The Statute of limitations was eliminated in 1991 for governmental student loans.  Reference the NACBA 2012 report

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