Loan Default Rates Rise Among Graduates, Report Says

According to a new Department of Education study, student loan default rates are increasing at a steady clip.

Forbes has more:

Nearly 1 out of every 14 graduates who began repaying their federal student loans between October 2007 and September 2008 defaulted on their debt by September 30, 2009, the study found, amounting to a 7% increase.

Inside Higher Ed reports on default rates among different types of colleges:

Rates rose fairly proportionally across all sectors of higher education, with borrowers who attended for-profit colleges defaulting at a rate of 11.9 percent (up from 11.0 percent in 2007), public college borrowers at a rate of 6.2 percent (up from 5.9 percent), and private nonprofit college borrowers at 4.1 percent, up from 3.7 percent.

What's your loan situation? Have you defaulted?

Comments

[The Cronk]

08:37 AM on 05/06/2010

Welcome to America, Home to The Most Well-Educated Poor People on The Planet.

[ShanniC]

07:00 PM on 05/04/2010

Student loans, public or private cannot be discharged. They will follow you until you pay them back or to your grave. Even then, those federally gauranteed loans will still be a profit to lenders if you default. You are screwed and the banks win!

[thrush6]

05:23 PM on 05/04/2010

When are high school counselors going to start telling students don't borrow money to go to college? You cannot default on a student loan, even if your degree is useless!!