Student Loan Default Rate
April 22, 2008 11:25 am Federal Student Loans, Private Student Loans, Student Loans2008 Student Loan Default Rate Projected To Increase
Increases in the student default rate are projected, as congress
extened the “Cohort Default Rate“, which projects the percentage
of college students defaulting on student loans. The extention will
move this gauge out to three years, rather than two years.
Colleges with a Cohort Default Rate of 25% for three years face a
possible loss of Federal Financial Aid for their institutions. This is
going to be an issue for students as funds for education get tight.
Students should apply as early as possible to avoid getting caught
in the cross-fire.
