More than 1 million people default on their student loans each year

Outstanding education debt in the U.S. has tripled over the last decade and now exceeds $1.5 trillion, with more than 1 million people defaulting on their student loans each year.

The government also has extraordinary collection powers with federal loans, since they're one of the only debts unable to be discharged in bankruptcy.

To make matters worse, defaulting on your education debt also increases the balance, likely due to collection fees and the accumulation of interest. After default, the Urban Institute found, a student loan borrower will see their balance balloon by around 10 percent."At best, it delays participation in the American Dream," he said. "At worst, they are shut out permanently.

If your loans are officially in default, call your loan servicer and ask them how you can return to good standing. Borrowers are typically presented with three solutions: loan rehabilitation, loan consolidation or paying off the loan in full.

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