Defaulting on Some Student Loans gets more Costly


Defaulting on college loans is always a bad idea. It not only triggers a harsh debt-collection process, it can also savage your credit rating and make borrowing difficult and more expensive. And now, a move by the Trump administration will make student loan defaults even more expensive. The Department of Education (DE) is getting behind an onerous 16 percent surcharge on Federal Family Education Loans in default. (The measure doesn’t apply to federal “Direct” loans the DE itself offers or holds.)