NAICU Washington Update

Data Show Slight Increase in Default Rates

September 28, 2017

After three years of steady decline, new data show a slight increase in student loan default rates for FY 2014, from 11.3 percent in 2013 to 11.5 percent. 

According to the Department of Education, private, nonprofit colleges and universities still had the lowest default rates.  Private, nonprofits had a7.4 percent default rate overall, and a 7 percent rate for four year institutions.  This compared with a rate of 7.5 percent at four year public institutions, and 18.3 percent at two year public colleges.

For-profit colleges had a 15.5 percent overall default rate, with a rate of 17.5 percent at two year institutions and 14.6 percent at four year schools.

Despite the fact that default rates at nonprofit colleges are still the lowest overall, the rate went up slightly from last year’s overall rate of 7.0 percent, including a 6.5 percent rate at four-year privates.  

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