The bad news on student loans just keeps coming. Within the past few months, federal student loan debt has surpassed the $1.2 trillion mark, Congress raised interest rates for incoming students and tied them to market swings and the average graduate from the class of 2013 left college with a record $30,000 of debt.

Last week, the Consumer Financial Protection Bureau (CFPB) released a jarring report on outstanding student loan debt and its hazardous effects on our economy. The CFPB found that nearly one-fifth of the millions of Americans with federal student loan debt are unable to pay back their loans. A total of 3.4 million people in America are in forbearance, accruing interest while unemployed or suffering financial hardship, while more than 7 million of those former students are in default.

This is incredibly problematic. Congress has legislated that, like child support, alimony and criminal fines, student debt is inescapable in bankruptcy. Unlike borrowers with unmanageable credit card debt, medical debt, mortgage debt or other loan debt, the millions of Americans who depended on student loans to make an important investment in their future cannot turn to bankruptcy in tough times. Until these 7 million former students pay back their student loans, debt collectors and the government can pursue the debtors, garnishing their Social Security payments, wages, tax credits and refunds, or place liens on their bank accounts and property.

This issue is not going away. Roughly one-third of all debt holders are current students, the cost of college is rising quickly and a bachelor’s degree remains important in our economy. And research has found that those young people entering into the “real world” with outstanding student loans defer major purchases and are less likely to buy a home or a car, depressing overall economic activity. 

Presidents George W. Bush and Barack Obama both introduced initiatives to ease the burden on financially overwhelmed individuals through Income-Based Repayment and Pay as You Earn plans that cap payments at 15% or 10% of a borrower's income, respectively, and forgive the remaining balance after 25 or 20 years, respectively. However, only 10.5% of the 15 million Americans currently repaying their student loans are enrolled in income-based repayment plans, indicating that many of the borrowers who could be helped by the programs either are not aware of them or are disqualified for other reasons. 

America’s fast-growing student debt problem is hurting our families, damaging our economy and lowering our quality of life. It demands our attention and our solutions.