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
Stay tuned for coverage of @CUNA's BSA conference which starts Sunday. #CUNABSA #CUNACompliance
11 hours ago
Today's the last day to complete @CUNA's Home Depot data breach survey http://t.co/UcB8G9bVXe #StoptheDataBreaches
12 hours ago
Brenda Davis of Cross Roads Ministries will walk through 83 communities during the Ending Hunger Walking tour. (2 of 2)
13 hours ago
The Ending Hunger Walking tour, coordinated by the Maine CU League, kicked off at Old Maine CU in Augusta today. (1 of 2)
13 hours ago
Darwin Brokke of Citizens Community CU represented the #CU Association of Dakotas at a housing summit hosted by @SenatorHeitkamp
13 hours ago