Over at Political Wire, Taegan Goddard provided a short brief about the increase in student loan defaults.
Here's a snippet:
The Department’s Office of Inspector General… blames a system installed in 2011 by Xerox that is supposed to transfer defaulted loan accounts from servicing companies to private collection agencies… The Inspector General’s office says the collection problem led to a ‘material weakness’ in the department’s financial controls last fiscal year, according to CNBC.While this post paints a decent picture of the problem at the macro level, it does not offer insights into the emotional and financial turmoil that is occurring in millions of homes across the country. Alas, it is 2013, and I have high hopes for this year, high hopes for actual solutions. Who knows? Maybe those solutions don't have to come out of legislation or policy changes in D.C. After all, Congress is - once again (sigh) - at yet another impasse, because of the high level of dysfunction in D.C. One should really say they have created multiple stalemates or dead ends, instead of suggesting it is merely one impasse. (And for the critics out there, who will quickly point out that this is "business as usual," here's what I have to say: D.C. hasn't always been this dysfunctional. This is a well-known fact inside the Beltway). In any event, it pains me to read these figures, as I can't help but think about the letters I've received, and continue to receive, that are filled with anguish, dread, and fear from overwhelmed, educated, and indebted Americans.