Student loan default rate 1 percent

2010-02-16T23:45:00Z Student loan default rate 1 percentGazette News Service The Billings Gazette
February 16, 2010 11:45 pm  • 

HELENA — The Montana Guaranteed Student Loan Program is reporting a preliminary default rate of 1 percent in fiscal year 2008 for the early months of student loan repayment.

It is the lowest rate the program has ever recorded.

The so-called cohort default rate is the percentage of borrowers who enter loan repayments during a fiscal year and default before the end of the next fiscal year.

Official cohort default rates won’t be released by the U.S. Department of Education until the fall, but the MGSLP expects its rate to be one of the lowest in the country.

In 2007, MGSLP had the second lowest cohort default rate at 2.2 percent.

Bruce Marks, director of the MGSLP, said the Montana program prevents more than 10,000 defaults every year by working with borrowers personally.

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