Your rich Uncle Sam is calling in his chips.
The U.S. government stepped up collections on delinquent student debt to $2.9 billion last year — or an average of $1,000 from 2.9 million former students and their co-signers, according to the Treasury Department. And the trend continues. In the first six months of fiscal 2019, which started Oct. 1, collections totaled $3.3 billion.
Graduating students are usually granted a six-month grace period before making loan payments. Hypothetically, a member of the Class of 2019 with $50,000 in loans would owe about $550 per month over the next decade — or $20 daily. (Assuming 6% annual interest and a 10-year term.)
The debt load is causing anguish that goes far beyond financial concerns. One in 15 borrowers has considered suicide due to their school loans, according to a survey of 829 people conducted last month by Student Loan Planner, a debt advisory group.
The Consumer Financial Protection Bureau said it's received 2,475 complaints from borrowers about the government's collection efforts since the start of 2018, including:
• "They call me daily, have called my brother, my father, my ex-brother-in-law, my current brother-in-law, and my ex-husband. They have told these individuals that they were trying to locate me for repayment of a student loan."
• "Called my wife — five times in three minutes — son, brother- and sister- in-law — not even same last name — to tell me to pay."
• "They've contacted my neighbors, my siblings, my sister-in-law's parents, and engaged in harassing phone calls."
