Earlier this week, a report was released by the Department of Education on the Three Year Cohort Default Rate. In their annual statistic report, the Department of Education found that the default rate for student loans is now 13.7% for students who entered repayment in 2011. This is down 1% from last year’s report that showed 14.7% default rate for student loans entering repayment in 2010.
In The News
For many in the media, this seems like the good news that we have been waiting for; fewer people are defaulting on student loan debt. However, the three-year cohort default rate statistic tells us only part of the story of student debt in the U.S. There are still many individuals who are unable to pay off their student debt and must default on their loan. When analyzing data for student loan default rates beyond the three-year mark, we can see that many people must default on student loans in their lifetime.
Student loans can be a significant burden for many people because they are often the first loans people take out, collecting interest over the many years it takes for individuals to get established in the workforce. In fact, one in five student loans in the U.S. defaults within twenty years. The financial burden of student loans can be overwhelming, and if you find that you are unable to pay your student loans without significant impediments on your living necessities, contact a student loan debt lawyer as soon as possible. Working with legal representation will help you negotiate a financial future that works for you.