Approximately 4.6 million Americans have defaulted on federal student loans, according to The Wall Street Journal.

This figure includes an increase of 274,000 people over the last three months. At the end of the third quarter of the fiscal year, these nearly 5 million defaulters represent 22% of all Americans who were required to pay federal student loans.

In addition to former students with federal loan payments, many are repaying private student loans or a combination of both. Those in debt from private loans typically have fewer avenues for forgiveness or repayment.

Personal consequences of defaulting on a loan are numerous and cumbersome. Federal Student Aid — an office of the Department of Education — lists penalties defaulters face.

Defaulting, especially on the scale of $84 billion, can also have repercussions for the entire economy.

The Federal Reserve Bank of New York has researched how student debt has depressed home purchasing by young adults, and found that as much as 35% of the decline in home ownership of people in their late 20s can be attributed to student loans.

Defaults make it harder to take out credit or even own a credit card, stifling additional economic activity.

Read the full article on defaulting on student loans by Matthew Michaels at Business Insider