Student Loan Default Rates Rise

Federal student loan default rates increased for the first time since 2013, according to new data from the U.S. Education Department.

The overall three-year cohort default rate ticked up fractionally from 11.3 percent to 11.5 percent for borrowers who began repayment in 2013-14. However, that number is still lower than it was for students who entered repayment in the 2012 fiscal year, the Chronicle of Higher Education reported. The default rate for public institutions remained steady, at 11.3 percent, and rose for private colleges, from 7.0 percent to 7.4 percent.

Based on the data released on Wednesday, ten institutions had high cohort default rates that exceeded either the federal limit for a single year (at least 40 percent of borrowers in default) or for three years (at least 30 percent). By failing to hit department-mandated thresholds, the schools could lose access to federal financial aid. Those institutions included several barber and cosmetology colleges, as well as Daymar College, a for-profit based in Ohio, and Southeast Kentucky Community and Technical College, Inside Higher Ed reported.

 

Related Links

Official Cohort Default Rates for Schools

https://www2.ed.gov/offices/OSFAP/defaultmanagement/cdr.html

The Chronicle of Higher Education

http://www.chronicle.com/blogs/ticker/national-default-rate-for-student-loans-rises-breaking-streak-of-declines/120372

Inside Higher Ed

https://www.insidehighered.com/quicktakes/2017/09/28/federal-loan-default-rates-rise