Analysis of Department of Education data revealed a 17% increase in 2016 in the number of Americans in default on federal direct loans serviced by companies hired by the federal government.
"Three thousand preventable student loan defaults each day in America is 3,000 too many," Rohit Chopra, senior fellow at the Consumer Federation of America, said. "Our broken system works well for the student loan industry, but is failing borrowers, taxpayers and our economy."
The Consumer Federation of America, which provided the analysis, noted at the end of 2016, 42.4 million Americans owed $1.3 trillion in federal student loans.
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