Student Loan Default Rates Drop for Third Consecutive Year

On Wednesday, the Department of Education announced that the cohort default rates have dropped for the third consecutive year. 5.2 million borrowers entered repayment in the 2013 fiscal year, and 11.3 percent defaulted on their student loans, which is down from 11.8 percent the previous year. The default rate has been on a downward trend since the 2010 fiscal year when rates stood at 14.7 percent. Borrowers default on a loan after they fail to make a payment for more than 360 days. Public institutions saw their rates dropped from 11.7 percent in the FY 2012 to 11.3 percent....

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