- Posted October 02, 2015
- Tweet This | Share on Facebook
Default rate for repaying student loans drops
![](/Content/LegalNews/images/article_db_image1.jpg)
By Jennifer C. Kerr
Associated Press
WASHINGTON (AP) - The Education Department says there's been another drop in the percentage of people who are defaulting on their student loans in the first years of repayment.
More than 5.1 million borrowers began paying back their loans in the 2012 budget year, and about 611,000 defaulted - about 11.8 percent. The rate was 13.7 percent in 2011 and 14.7 percent for 2010.
"We're seeing real progress," Education Secretary Arne Duncan said Wednesday in a phone call with reporters.
The drop was seen across all sectors of higher education - public, private and for-profit institutions.
For public institutions, the rate fell from 12.9 percent to 11.7 percent, and from 7.2 percent to 6.8 percent for private nonprofit schools.
For-profit schools had the highest rate - 15.8 percent, a decline from 19.1 percent the previous year.
All schools with a default rate that is equal to or greater than 30 percent must come up with a plan to identify the reasons for the high rates and submit that plan to the department.
Schools with high default rates may lose eligibility to take part in federal financial aid programs.
Published: Fri, Oct 02, 2015
headlines Oakland County
- Battle of the Bar at Corner Ballpark
- Two Nigerian brothers sentenced for sextortion that led to Michigan teen's death
- Sterling Heights man guilty of first degree murder of his girlfriend
- Court rules marijuana business petitions cannot amend city charters
- ABA joins NASS and NASED to mobilize lawyers as poll workers for upcoming elections
headlines National
- Judge accused in drive-by shootings has progressive brain disease, court filing says
- Despite lyrics mistake by AI, lawyer wasn’t ineffective for using tech in rapper’s case, federal judge says
- Former Littler lawyer drops California suit against firm, bringing end to departure dispute
- Last-minute election lawsuits may serve political goals, law prof says
- Criticizing plaintiff’s ‘chutzpah,’ federal judge holds lawyer jointly responsible for over $207K in legal fees
- Personal injury firm sues TD Bank after loss in fraud scheme