The Default Rate on Student Loans is Decreasing
Loan default rates can indicate how well Allegheny College is helping students afford to attend college
without undue reliance on loans, particularly unsubsidized loans. It can also indicate future earnings and career potential. Look at the information below, and discover why this statistic should be a factor in your college decision.
A total of
540 Allegheny College
students entered loan repayment in 2010.
After three years, 4.8% of these students
(26 out of
540) defaulted on their loans.
The lower the default rate the better! The chart below compares this college to the average 3-year default rate calculated accross all of the 4-year schools we have data for.
Prior to 2012, default rates were calculated at two years.
The historical two-year default rate on student loans
during a three-year period.
When compared to the average three-year default rate of 7.4%,
the default rate at Allegheny College is
normal, but as the average is increasing at alarming rates, you should make sure you fully understand
and are comfortable with your financial aid offer.
Is Allegheny College offering you two separate student loans, one for a subsidized amount and one for an unsubsidized amount? Do you understand the difference? Multiply the total of the loans over four or five years of college and calculate your estimated monthly payment when you graduate. Does it shock you or does it seem affordable? Understanding what you will owe after graduation can help prevent you from starting your career with a large amount of debt that you cannot reasonably afford.