Office of Public Affairs
(315) 341-2265
Nov. 8, 2000
OSWEGO -- Oswego State's student loan default rate has dropped a percentage point, from 5 to 4 percent, according to the latest report from the U.S. Department of Education. The decrease is consistent with the national trend.
The default rate is the percentage of those borrowers who enter repayment in a fiscal year and who default by the end of the next fiscal year.
"One percent is significant," Kathy Pagano, interim director of financial aid, said of Oswego's decrease. "Anytime you drop, it's always good. It's the direction we're supposed to be going."
She attributed the decline to better enforcement and tracking along with more awareness among students of their responsibility.
Default rates for all categories of schools fell in the latest report. The average rate both nationally and in New York state is 6.9 percent for public and private higher education institutions at all levels. The national average default rate for public institutions was, again, 6.9 percent. Private institutions had a lower average default rate (5.7 percent) and proprietary institutions a higher one (11.4 percent).
Nationally, the average default rate peaked at 22.4 percent in 1990. The next year, the federal government began imposing sanctions on schools that failed to follow federal rules or that exceeded 25 percent for three years. Since then, about 1,200 schools have lost eligibility for federal student loan programs.
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