An analysis of new student loan data finds the number of federal loans in default at the end of 2016 increased 14 percent from 2015. Cumulative defaults -- defined in federal law as nine months past due -- stand at $137.4 billion, according to the analysis by the Consumer Federation of America.
The group examined new data posted by the Office of Federal Student Aid last week. The analysis also found that 1.1 million federal direct loan borrowers defaulted in 2016.
"Three thousand preventable student loan defaults each day in America is 3,000 too many," said Rohit Chopra, a senior fellow at the federation and the former student loans ombudsman at the Consumer Financial Protection Bureau, of the direct loan defaults last year. "Our broken system works well for the student loan industry but is failing borrowers, taxpayers and our economy."