Default rates up again according to the Department of education.
One in ten borrowers across the country, 475,000 people, who entered repayment during the fiscal year ending in September 2011 had defaulted by the following September, the data showed. That’s up from 9.1 percent of a similar cohort of borrowers last year.
One in ten borrowers across the country, 475,000 people, who entered repayment during the fiscal year ending in September 2011 had defaulted by the following September, the data showed. That’s up from 9.1 percent of a similar cohort of borrowers last year.
Even more borrowers are struggling in delinquency when the period of measurement is extended to three years. The percentage of borrowers defaulting within three years after beginning repayment has also risen from 13.4 percent to 14.7 percent for the most recent cohort of borrowers available (those who entered repayment from October 1, 2009 to September 30, 2010 and had defaulted by September 2012). The 14.7 percent default rate represents 600,000 borrowers.
It is a fact that a college education is expensive, very expensive. Even at lower-priced, state-supported colleges a four-year degree can still cost in excess of $50,000. College tuition and fees continue to increase at an alarming rate. These increases have made "paying for college" practically impossible.
In a recent survey conducted by the American Council on Education it was found that financing their children’s college education is one of the top five concerns facing American parents today. Although parents generally have good intentions, there are many unforeseen circumstances along the way that prevent them from saving a sufficient amount of money to pay for their children’s college education.
With today’s economy, and the inflation we have experienced over the past twenty years, this problem is far more evident now than it ever has been in the past. It most often takes two incomes just to meet the family’s budget. Unfortunately, after paying the family’s monthly expenses, there is usually not much left over for the student’s college education.
Fortunately, you do have options! Contact us for additional information.
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