Federal Student Loan Default Rates Decline

The rate is at its lowest amount since the U.S. Department of Education released data on the three-year rate in 2012.

10/2/2018 8:00 AM

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Federal Student Loan Default Rates Decline

Student loan default rates are declining, according to a recent report from the U.S. Department of Education (DOE.)

The national federal student loan cohort default rate in fiscal year 2015 declined by 6.1 percent compared to the fiscal year 2014 national rate, from 11.5 percent to 10.8 percent, according to a news release from the DOE.

This is the lowest default rate since the DOE released data on the three-year rate in 2012.

“The FY 2015 national cohort default rate is the percentage of a school’s borrowers who entered repayment on Federal Family Education Loan Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans between Oct. 1, 2014, and Sept. 30, 2015, and subsequently defaulted prior to Sept. 30, 2017,” according to a news release from the DOE.

The 10.8 percent default rate represents 531,653 of 4.9 million borrowers who defaulted on their loans between Oct. 1, 2014, and Sept. 30. 2017.

Those borrowers attended 6,155 postsecondary institutions across the U.S.

Among different school types, the cohort default rates declined at public and private institutions but increased among borrowers for-profit vocational schools from fiscal year 2014 to fiscal year 2015, according to the DOE.

The public institution default rate declined from 11.3 percent to 10.3 percent.

“Public institutions make up approximately 27 percent—or 1,660—of the total number of schools and represent approximately 53 percent of borrowers who entered repayment that year,” the DOE reports.

The rate at private schools, representing about 28 percent—or 1,726—of total schools, declined from 7.4 percent to 7.1 percent while the vocational school rate (among 2,364 institutions) increased slightly from 15.5 percent to 15.6 percent.

Read more on the DOE’s data in the news release as well as the default management website, which provides data on the national student loan default rate as well as for individual schools, states and more.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

Federal Student Loan Default Rates Decline

Student loan default rates are declining, according to a recent report from the U.S. Department of Education (DOE.)

The national federal student loan cohort default rate in fiscal year 2015 declined by 6.1 percent compared to the fiscal year 2014 national rate, from 11.5 percent to 10.8 percent, according to a news release from the DOE.

This is the lowest default rate since the DOE released data on the three-year rate in 2012.

“The FY 2015 national cohort default rate is the percentage of a school’s borrowers who entered repayment on Federal Family Education Loan Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans between Oct. 1, 2014, and Sept. 30, 2015, and subsequently defaulted prior to Sept. 30, 2017,” according to a news release from the DOE.

The 10.8 percent default rate represents 531,653 of 4.9 million borrowers who defaulted on their loans between Oct. 1, 2014, and Sept. 30. 2017.

Those borrowers attended 6,155 postsecondary institutions across the U.S.

Among different school types, the cohort default rates declined at public and private institutions but increased among borrowers for-profit vocational schools from fiscal year 2014 to fiscal year 2015, according to the DOE.

The public institution default rate declined from 11.3 percent to 10.3 percent.

“Public institutions make up approximately 27 percent—or 1,660—of the total number of schools and represent approximately 53 percent of borrowers who entered repayment that year,” the DOE reports.

The rate at private schools, representing about 28 percent—or 1,726—of total schools, declined from 7.4 percent to 7.1 percent while the vocational school rate (among 2,364 institutions) increased slightly from 15.5 percent to 15.6 percent.

Read more on the DOE’s data in the news release as well as the default management website, which provides data on the national student loan default rate as well as for individual schools, states and more.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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