The Problems of Federal Student Loan Delinquency and Default in the United States of America

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  • アメリカにおける政府学生ローンの延滞・債務不履行問題
  • アメリカ ニ オケル セイフ ガクセイ ローン ノ エンタイ ・ サイム フリコウ モンダイ

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Abstract

<p>　 The purposes of this study are to clarify the trends of federal student loan delinquency and default and the countermeasures taken by the Federal Department of Education to decrease them.</p><p> 　 First, I review the research literature on the characteristics of student loan defaulters. Secondly, I survey the countermeasures taken by the Federal Government to decrease default rates, and point out thoes characteristics as follows: 1) an improvement in the methods of debt collection and the introduction of sanctions targeting the higher education institutions with a high cohort default rate in 1990, 2) amendment of the US Bankruptcy Code and expansion of exceptions to bankruptcy discharge, and 3) diversification of repayment options. In relation to the first point, the Federal Government started passing default information to national credit bureaus, outsourcing collection to debt collection agencies, offsetting income tax refunds and garnishing the wages of defaulters. In addition to these efforts, they introduced sanctions against the institutions with a high cohort default rate. This was very effective in decreasing the default rate. In relation to the second point, the repayment of federal student loans could not be canceled due to bankruptcy afrer 1998. It was criticized from a consumer protection point of view. However, the Federal Government also expanded the exceptions to bankruptcy discharge in respect of private student loans. In relation to the third point, the US General Accounting Office reported that the default rates between non-consolidated loans and consolidated loans differed substantially in relation to the four repayment options.</p><p>　 Finally, on the basis of this study, I point out that JASSO should strengthen not only debt collection more carefully but also diversify the repayment options and share the borrower’s repayment information with universities.</p>

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