Ethics Financial aid is available to those who need assistance to pay for their college education. Rising costs of education require more people than ever to seek student loans. When people fail to repay their student loans, taxpayers are left paying the bill and less money is available for others to use. Some people feel that student loans do not have to be repaid. Nationwide, there is a high student default rate.

The U.S. Department of Education releases default rates each year. For those schools that have extremely high default rates (for student loans granted through their institution), their access to future federal student aid funds may be limited. Why should people repay their student loans?

If loans aren’t repaid, what are the negative effects?