Private student loan debt reaches $150 billion
Americans have racked up $150 billion in private student loan debt, with many graduates owing more than they can afford, according to a new report from the Consumer Financial Protection Bureau.
Private student loans were aggressively marketed to students before the financial crisis and typically came with fewer protections and higher interest rates than federal loans, the report found.
Defaulted private loans currently total more than $8.1 billion, representing 850,000 individual loans.....
Private student loans used to be dischargeable in bankruptcy like any other consumer debt, but under a 2005 change to the bankruptcy code, private student loans can no longer be discharged unless borrowers can prove undue hardship -- the same rule that applies for discharging federal student loans.
And while federal interest rates are fixed, private loans typically carry varying -- and often higher -- interest rates based on credit worthiness...
Private student loans were aggressively marketed to students before the financial crisis and typically came with fewer protections and higher interest rates than federal loans, the report found.
Defaulted private loans currently total more than $8.1 billion, representing 850,000 individual loans.....
Private student loans used to be dischargeable in bankruptcy like any other consumer debt, but under a 2005 change to the bankruptcy code, private student loans can no longer be discharged unless borrowers can prove undue hardship -- the same rule that applies for discharging federal student loans.
And while federal interest rates are fixed, private loans typically carry varying -- and often higher -- interest rates based on credit worthiness...
............. By Blake Ellis
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