Student loan cohort default rate update

Higher ed efforts easing the loan crisis
By: | Issue: November/December, 2019
November 18, 2019
The percent of students defaulting on student loan payments is decreasing.The percent of students defaulting on student loan payments is decreasing.

The Department of Education delivered some good news this fall about the student loan crisis: Cohort default rates for federal loans dropped to 10.1% for fiscal year 2016, a significant decrease over the previous year.

Cohort default rate update (click on infographic to enlarge)

Cohort default rate update (click on infographic to enlarge)

Mike Brown, research analyst at LendEDU, an online student lending marketplace, says the data likely reflects aggressive institutional efforts to keep default rates low through improved academic advising and financial literacy lessons, plus an increase in scholarships and work-study programs. Click on the infographic for a by-the-numbers breakdown of the data.