College graduates are increasingly defaulting on their student loans due to high unemployment rates.
College graduates are increasingly defaulting on their student loans due to high unemployment rates.
The job market is particularly bad for recent graduates.
The prior fiscal year of 2008-2009 showed a national default rate increase from 5.9 to 6 percent for public institutions, and an increase from 3.7 to 4 percent for private institutions, according to U.S. Secretary of Education Arne Duncan in September.
Using current data representing borrowers who defaulted before Sept. 30, 2009, 3.4 million borrowers entered repayment, and more than 238,000 defaulted on their loans.
“This data confirms what we already know – that many students are struggling to pay back their student loans during very difficult economic times,” said Duncan. “That’s why the Administration has expanded programs like income-based repayment and Pell grants to help students in financial need.”
Read more at the Central Oregonian.
{biztweet}student loan{/biztweet}
