The average delinquent student loan balance is $3,000. Not bad considering that annual tuition bills averaged $18,784 for private colleges and $8,990 for public universities during the 1994/1995 school year.

According to Department of Education statistics, from 1980 to 1994 tuition increased--above the rate of inflation--by an average of 4.2 percent each year for public universities, and 4.8 percent annually for private colleges.

Over the past several years, students have increasingly turned to borrowing to cope with rising education costs. The percentage of post-secondary students who have borrowed money degrees increased from 41 percent in 1992/93 to 52 percent in 1995/96. The average amount of debt per student increased from about $7,800 to about $9,700.

Student loans are not dischargeable under bankruptcy within the seven years of repayment unless the student can demonstrate that paying such a debt would cause themselves undue hardship. [11

U.S.C. section 523 (a)(8)(A)].

In a survey of 65 percent undergrads and 35 percen graduate students, the average debt in 1997 for students was $18,800, compared to $8,200 in 1991. The median total debt was $13,000.

The failure of an individual campus to collect on federally backed outstanding student loans decreases that campus' future borrowing potential. This is known as the cohort default rate.

The U.S. Department of Education's (ED) placed $8.5 billion in delinquent student loans with eight private collection agencies in 1995

As of September 1997, the U.S. Department of Education had $44.7 billion in accounts receivable. Of that, $22 billion was delinquent since last payment, representing more than 42 percent of all federal non-tax delinquent debt.

As a professional bill collection agency, we successfully resolve debts for our clients. Click here to inquire about our unique affordable rates. We don't charge for services unless we're able2collect for you.