Defaulted Student Loan Suits Down Sharply from 2011 Peak
(04 Dec 2017) The latest available data from the federal courts show that during October 2017 the federal government reported filing 41 new civil actions for recovery of defaulted student loans. (Veterans are excluded from these counts.) These actions typically involve use of Title 20 Section 1080 on student loan recovery, or Title 28 Section 1345 concerning the default of student loans.

When monthly 2017 civil filings of this type are compared with those of the same period in the previous year, their number was down (-40.6%). Civil suits for October 2017 are also lower than they were for the same period five years ago. Overall, the data show that civil filings of this type are down 70.3 percent from levels reported in October 2012.

A record number of 4,335 suits were filed during FY 2011, and since that peak the number of these suits have steadily declined. Last year only 698 suits were filed, or an average of 58 per month. The figures for the first month of FY 2018 (October 2017) thus represent a decline even from last year's average numbers.

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