Federal Student Loan Cohort Default Rate Jumps 25 Percent

On Tuesday, September 12, 2011, the U.S. Department of Education released the current Federal Student Loan Default numbers which have reached their highest level in 12 years.

Also, in a related online article by NASFAA (National Association of Student Financial Aid Administrators), NASFAA President Justin Draeger said in a statement, “Issues such as unemployment rates and family income can’t be controlled by colleges. However, colleges and universities embrace the concept that they can have a positive impact on student loan repayment rates by helping struggling students succeed academically; helping them set realistic expectations in terms of salary and work goals; and by counseling them on smart borrowing, repayment options and avoiding default.”

Draeger noted that financial aid offices are currently struggling with record workloads and a host of new and challenging regulatory requirements that can leave fewer resources for critical one-on-one counseling.

The experts at College Financing Group provide the critical one on one loan counseling and specialize in guiding student borrowers as well as devising the best repayment plan option for the borrower and their budget. For more information and details about these services, please view our Student Loan Repayment Solutions page.