Do you have student loans still hanging over your head? You’d be in good company: 22 million other Americans do, too, reports the Wall Street Journal. You’d also have a lot of company if you’ve unfortunately found yourself in default (3.6 million people), delinquent on payments (3 million people) or postponing payments (3 million people). Which leaves 12.5 million folks who are current on their loans.
What’s with all those people not paying back the more than $200 billion they collectively owe? As WSJ reporter Josh Mitchell discusses in the video above, when you have a low-paying job, a ton of bills and not enough cash to go around, you have to prioritize what gets paid and what doesn’t. That means your car payment and your rent or mortgage are probably at the top of that must-pay list, and your student debt slides to the bottom.
Watch the video above to learn what the far-reaching effects of all those people not paying could be and what the Obama administration is doing to try to improve the odds on student loan repayment.