More borrowers are defaulting on their student loans, according to the U.S. Department of Education. The three-year cohort default rate on student loans climbed from 13.4 to 14.7 percent between FY 2009 and FY 2010. The rate is calculated based on the cohort of borrowers whose loans entered repayment between October 1, 2009 and September 30, 2010 (FY 2010). During that time, more than 4 million borrowers entered repayment and 600,000 defaulted before September 30, 2012.
Among borrowers who attended for-profit institutions, the three-year cohort default rate was a hefty 21.8 percent. Public institutions had a lower default rate of 13.0 percent. Private nonprofit institutions had the lowest default rate—a still substantial 8.2 percent.
Source: Department of Education, Default Rate Continues to Rise for Federal Student Loans
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