Report: Washington Student Loan Debt Hits $24 Billion

OLYMPIA, WA - A new report released by Attorney General Bob Ferguson's office found that borrowers in the state of Washington now owe more than $24 billion in student loan debt. More than 800,000 Washingtonians carry student loan debt, up 35 percent from a decade ago.

The report is intended to shed light on the problems borrowers face, with delinquency rates rising in the state. In fact, delinquency among student loan borrowers is higher than for any other form of debt.

"There are too many student loan borrowers in Washington who are struggling to make payments," said Ferguson. "Pursuing an education should not force students to take on insurmountable debt. We must do more to protect Washingtonians who feel like higher education equals a debt sentence."

Ferguson's office frequently receives complaints from borrowers such as this one: "Over the years, I have attempted to repay student loan debt only to find myself with more fines, more interest, and rising monthly payments beyond my ability to meet."

Ferguson said that the report shows the need to pass greater legal protections for borrowers, including limiting income garnering to pay back loans and creating strict licensing requirements for loan servicers.

Racial inequality is also affects distribution of the student loan debt burden. According to the report, black students graduate with $7,000 more in debt than their white counterparts, widening to $25,000 more four years following graduation.

Graduates who earn less money are also vulnerable. Borrowers who made less than $40,000 from 2006 to 2011 had a 35 percent default rate. The rate for those making $60,000 to $80,000 was almost half that. (For more local news, click here to sign up for real-time news alerts and newsletters from Seattle Patch, click here to find your local Washington Patch. Also, follow us on Facebook, and if you have an iPhone, click here to get the free Patch iPhone app.)

Image via Associated Press