TICAS Statement on Official Three-Year (FY15) CDRs

September 26, 2018
Statement of Debbie Cochrane

New data from the U.S. Department of Education show that 10.8 percent of federal student loan borrowers who entered repayment in 2015 had defaulted on their loans by 2017, a decrease from the prior year’s rate of 11.5 percent. Rates decreased at public and nonprofit colleges, but increased at for-profit colleges. Default rates play a critical role in holding colleges accountable and tracking how many borrowers experience the worst student loan outcomes soon after leaving college. The consequences of default are costly, long-lasting, and too often punitive. Student loans are intended to help to lift students up, but defaulted loans push them back down.