About 40 percent of borrowers with direct federal student loans are repaying them, according to a new report by the Consumer Financial Protection Bureau that offers the first comprehensive snapshot of the lending program since the government created it in 2010. However, a significant number of borrowers who took out these newer loans are unable to pay them back. Excluding borrowers who are not paying because they are still in school or within the grace period, about 22 percent of these 27.8 million borrowers are in default or forbearance. Overall, CFPB student loan ombudsman and report author Rohit Chopra adds, no less than 7 million borrowers are in default on federal and private student loans with an outstanding balance of $1.2 trillion.
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