Default rate on federal student loans inches up
Posted September 27, 2017 7:00 am
WASHINGTON (AP) - Government records show the number of people who are defaulting on their federal student debt is increasing.
The Education Department says more than 580,000 students who started repaying their debt in fiscal year 2014 defaulted on their loans by the fall of 2016. That puts the default rate at 11.5 percent. The figure was 11.3 percent for the previous year.
Seven for-profit schools, two public and one private institution with high default rates are at risk of losing access to federal student aid programs. High default rates are defined as 30 percent or greater over three consecutive years or 40 percent or greater for the latest year.
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