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Your rich Uncle Sam is calling in his chips.
The U.S. government stepped up collections on delinquent student debt to $2.9 billion last year — or an average of $1,000 from 2.9 million former students and their cosigners, according to the Treasury Department. And the trend continues. In the first six months of fiscal 2019, which started Oct. 1, collections totaled $3.3 billion.
Graduating students are usually granted a six-month grace period before making loan payments. Hypothetically, a member of the Class of 2019 with $50,000 in loans would owe about $550 per month over the next decade — or $20 daily. (Assuming 6% annual interest and a 10-year term.)
Key Insights
- The Treasury Department may withhold federal income tax refunds, Social Security payments (including Social Security disability benefits) and more
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