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An analysis of student loan borrowing by the federal Consumer Financial Protection Bureau found that $89 billion in loans are in default as of June 2013.

(File photo)

LANSING -- Statistics analyzed by the federal Consumer Financial Protection Bureau show that more than six million borrowers are in default on their federal student loans, representing $89 billion of the more than $1 trillion in outstanding debt.

The bureau, created in response to the 2008 financial crisis, is tasked with supervising financial companies, enforcing consumer protection laws and providing financial education to Americans.

The student loan analysis was based on information from the National Student Loan Data System, a division of the U.S. Department of Education. The analysis examines loans made both under the Direct Loans program and the Federal Family Educational Loan (FFEL) program, a bank-based system which stopped making loans in 2010.

More than 50 million Americans had received loans through these programs as of June 2013, according to the analysis, and the majority of loans are in repayment. A large percentage, 28 percent, of Direct Loan borrowers are still in school, and an additional 7 percent of Direct Loan borrowers are still in a post-graduation "grace" period.

More than $569 billion in loans are outstanding under the Direct Loans program, according to the analysis. The average outstanding balance for loans in default under the Direct Loans program is $14,500.

The older FFEL program has an average outstanding balance for loans in default of $13,400, but almost one in five borrowers under that program is in default.

Unlike other kinds of loans, student loans generally cannot be discharged or canceled in bankruptcy, and the federal government can withhold tax returns, garnish wages and, in some cases, withhold Social Security payments to collect on the loan.

Only about 1.5 million borrowers in repayment are in new income-based plans for paying back their loans, the analysis states, while more than 13 million are in either the standard 10-year repayment plan or lengthier repayment plans not based on income.

The bureau maintains a list of questions and answers for student loan borrowers to find information on alternative repayment plans, options to avoid defaulting on loans and other information.

A report released earlier this year on student loans by the bureau cited statistics from the National Association of Home Builders and the National Association of Realtors indicating high student loan debt was responsible for a sharp decline in first-time homebuyers.

Brian Smith is the statewide education and courts reporter for MLive. Email him at bsmith11@mlive.com or follow him on Twitter or Facebook.