Economy
4:35 pm
Wed May 16, 2012

Michigan court district ranks No. 1 in lawsuits filed against student loan defaulters

Federal data show that a federal court district in Michigan ranks number one in the country for the number of federal lawsuits filed against individuals who default on their student loans.

Relative to population size, defaulters in the Eastern District of Michigan (Detroit) were prosecuted at a rate about 10 times the national average during March 2012.

The Central District of California (Los Angeles) came in second, and the Northern District of New York came in third.

Out of the 279 suits filed in March, 57 were filed in the Eastern District of Michigan, 140 in the Central District of California and 13 in the Northern District of New York.

The report, published by the Transactional Records Access Clearinghouse (TRAC) at Syracuse University, compared the total number of civil filings per month since March 2007. The number remained relatively stable (between 200 and 250) until Spring 2009, when it dipped slightly, bottoming out at 168 in December of that year.

The number then rose substantially to 598 in April 2011 before declining again towards the early 2009 average.   

The Eastern District of Michigan’s leadership in per capita student debt lawsuits is nothing new. The court topped the ranks five years ago and came in second last year, according to the TRAC report.

The Institute for College Access & Success, a non-profit research and policy organization, reported that 60 percent of 2010 Michigan graduates carried student debt, owing an average of $25,675 — the 11th highest average in the nation.

- Suzanne Jacobs, Michigan Radio Newsroom