Here is a Financial Times headline that's behind a paywall.
More than 9mn US borrowers miss student loan payments as delinquencies rise
Out of curiosity, I asked AI for details on the subject. Here's part of what I found.
As of late 2025, approximately 5.3 million borrowers are in default on their student loans.
An additional 4.3 million borrowers are classified as being in "late-stage delinquency," meaning they are between 181 and 270 days late on payments.
Millions upon millions more, though faithfully making payments, struggle to do so.
Since the US government ceased insuring student loans and became a direct lender, student loans became freely available to virtually anyone who applied. The result was a flooding of lesser qualified persons into institutions of higher learning, both public and private. This also contributed to tidal wave of newly created schools to take advantage of the massively increased demand. In the process, all schools became more interested in enrollment numbers and less interested in providing quality output.
And, of course, because money was available for the asking, hardly anyone was concerned about the burden of repayments. Meanwhile, the "return on investment" by the masses of borrowers fell significantly.
Is it any wonder that there is now a problem?
The moral of the story is, if you want to solve a problem, don't ask government to do it.
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By the way, GO ARMY, beat Navy! |
