Stunning Failure of Our Student Loan System

How dysfunctional is our student loan system? Consider this: Of borrowers who began repaying their debts in 2009, 26 percent have already defaulted—meaning they fell at least 270 days late on their debt—according to new data from the Federal Reserve Bank of New York. Of those who went into repayment in 2005, when the economy was somewhat decent, 25 percent have defaulted.