I woke up early today—and found that Google Alerts punked me!
Okay, the most charitable interpretation is that yes, the WSJ is right that big numerators over small denominators give you big percentages, and at the same time, MainStreet is correct that many more people who are eligible for IBR aren’t on it. MainStreet is referring to the large number of borrowers who are delinquent on their loans. In fact, the New York Fed tells us that as of mid-2015 the 90+-day delinquency rate hasn’t gone down since the age of delinquency began in 2013.
So when the WSJ writes in its article’s subheader, “Taxpayers face risk of covering loans,” it needn’t scare its readers so much: It’s already happening.