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Nearly 5 Million Americans in Default on Student Loans
The number of Americans severely behind on payments on federal student loans reached roughly 4.6 million in the third quarter, a doubling from four years ago, despite a historically long stretch of U.S. job creation and steady economic growth.
The government's student-loan portfolio now totals $1.37 trillion.
The rise in defaults comes despite a strong labor market—unemployment is at a 17-year low—and carries long-term consequences for borrowers and the economy.
Research from the New York Federal Reserve last month shows many borrowers who fall behind on payments dropped out of college before earning a degree, and attended for-profit schools and community colleges.