Student loan debt has become so staggering that it has surged beyond auto loan debts and exceeded the $1 trillion mark. There have been many proposals about how to correct this growing problem.
No one denies that student loan debt needs reform, but the opinions vary on the subject. President Obama has been calling for the extension of the act Congress passed in 2007 that halves the interest of certain student loans from 6.8% down to 3.5% and is set to expire in July of 2012.
One issue that has been mostly ignored in student loan debt is the vast number of Americans who have defaulted on their loans. Those in default often face such harsh austerity measures on garnished wages that it is more effective to remain on unemployment instead of working near minimum wage. This encourages defaulted students to either remain on unemployment or work “under the table.”
From: Top Colleges Online