More Students Defaulting On Federal Loans

There's new evidence that rising college tuition costs, low graduation rates and poor job prospects are getting more and more students over their heads in debt.

The Department of Education said the number of borrowers defaulting on federal student loans jumped sharply last year to almost nine percent.

It has risen four years in a row to its highest rate since 1997.

The Department of Education has started an income-based repayment plan that caps loan payments at 15 percent of discretionary income.