And while it is impossible using historical data to extrapolate with precision what the current consolidated federal student loan default rate is, we do know that there is now $914 billion in federal student loans (which also was mysteriously revised over 50% higher by the Fed just a month ago). Using simple inference, all else equal (and all else has certainly deteriorated), there is now at least $122 billion in federal student loan defaults. And surging every day.Zero Hedge
The Next Subprime Crisis Is Here: Over $120 Billion In Federal Student Loans In Default
Submitted by Tyler Durden
These loans are federally guaranteed so wait for another bailout.
These loans can not be discharged in bankruptcy, so many students are going to be living with the consequences for a long time, likely including wage garnishment if they ever do get a job.
It's a debacle that will impoverish a significant portion of the generation.