Number of student loan defaults spikes in 2016
EL PASO, Texas--The number of people who fell behind in paying back their student loans spiked last year, according to a new report.
Many students at UTEP will soon join 42 million Americans who are trying to pay off their student loans.
A report from the Consumer Federation of America shows that millions of students didn't make a payment for at least nine months last year.
Those students owed $137 billion in federal student loans, an increase of 14 percent over 2015.
The Washington Post reported that policy leaders are looking into the effectiveness of student loan servicing companies, especially since people are starting to default for at least a second time.
"Most jobs you want to have want you to have some sort of education. so i could see why they would want that. I wouldn't want to be paying somebody a bunch of money if they're not educated," said student Arturo Mendoza.
The report said there is no exact explanation for the growth, but expensive graduate programs and an overall rise in the cost of college are all factors.