Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

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
#Maine #creditunion membership growth continues record pace http://t.co/yFRur4TQ0x
6 hours ago
.@TheNCUA closes N.Dade Community Development FCU,Miami Gardens, Fla. determining CU violated some charter provisions,bylaws & fed. rules.
7 hours ago
Why a #creditunion can be a good fit for #smallbiz http://t.co/l7Df9b8vQZ @fundbox
9 hours ago
Who's most adept at saving these days? The middle class, says @Bankrate http://t.co/zVi7typdVU
10 hours ago
.@OregonCCU donates $20K in Sprint program monies to @CMNHospitals @CU4Kids via @NWCUA http://t.co/0wTAH5NTNI
10 hours ago