Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Report High delinquency default rates on student loans
MADISON, Wis. (3/18/11)--A high percentage--41%--of student borrowers who receive financial aid to fund higher education face the negative consequences of delinquency or default during the first five years after they begin repaying their loans, according to a new study. About 37% of borrowers who began making repayments in 2005 made timely payments without postponing payments or becoming delinquent, according to the Institute for Higher Education Policy report. Because credit unions are increasingly using student loans to attract young members, the credit unions need to be careful that higher percentages of loans they issue don’t become delinquent or lead to defaults. Other findings of the study include:
* Roughly 15% of student borrowers not only became delinquent, but also defaulted on their loans at some time during the first five years of their repayment term; * About 23% of borrowers used repayment tools and options provided by the federal government to postpone their payments, and therefore, avoid delinquency; * More than one-fourth--26%--of borrowers who began repayments in 2005 became delinquent on their loans, but did not default; and * Most borrowers who left postsecondary education without graduating had trouble repaying their loans. About 33% of undergraduate borrowers who left without a credential became delinquent without defaulting, and 26% defaulted.
To read the report, use the link.
Other Resources

RSS print
News Now LiveWire
Why is a #creditunion a good fit for you? http://t.co/i4pGT98mkT via @MONEY
7 hours ago
The numbers are in: Home Depot data breach impact on #creditunions = $57.4 million, 7.2 million credit/debit cards http://t.co/jorYSOYuxj
8 hours ago
.@Nussle : We'll back off when retailers accept their breach responsibility #NewsNow http://t.co/7WxDXicb6j
11 hours ago
RT @asmarterchoice: RT @daily_finance: Top 5 money management tips for 30-somethings http://t.co/mWRfDRSTE7
11 hours ago
Operational efficiencies focus of new @CUNA program #NewsNow http://t.co/qBYHKVYeQN
11 hours ago