The U.S. Department of Education today released the FY 2014 three-year federal student loan cohort default rate. The rate increased slightly from 11.3 percent to 11.5 percent for students who entered repayment between fiscal years 2013 and 2014.
During the tracking period for the FY 2014 borrower cohort (Oct. 1, 2013 to Sept. 30, 2016), more than five million borrowers entered repayment, and 580,671 of them—or 11.5 percent—defaulted on their loans. Those borrowers attended 6,173 postsecondary institutions across the nation.
Over the past five years, the rate has decreased 3.2 percentage points from a high of 14.7 percent to 11.5 percent today.
The FY 2014 cohort default rate is the percentage of a school’s borrowers who entered repayment on Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans between Oct. 1, 2013 and Sept. 30, 2014 and subsequently defaulted prior to Sept. 30, 2016.
The U.S. Department of Education today released its Quarterly Student Aid Report, a collection of key performance data on the federal student loan portfolio, revealing continued increases in income-driven repayment enrollment with notable decreases in defaults and delinquencies.
Within the report, the Department’s office of Federal Student Aid unveiled new, expanded data on the $357 billion Federal Family Education Loan (FFEL) program, which typically consists of federal student loans originated by banks.
The quarterly update includes three new reports to shed light on the FFEL portfolio owned by the Department—showing loan status, repayment plan and delinquency level.
“Today’s analysis suggests that the Administration’s efforts to help struggling borrowers are having a positive impact,” said U.S. Secretary of Education John B. King Jr. “We will continue to make more data available to shed light on student debt in America. As President Obama has said, ‘Government should be transparent. Transparency promotes accountability and provides information for citizens about what their government is doing.'”