The Default Rate on Student Loans is Increasing
Loan default rates can indicate how well Alma 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.
Pay close attention to this statistic. You don't want to take out loans you can't pay back.
A total of
378 Alma College
students entered loan repayment in 2012.
After three years, 5.2% of these students
(20 out of
378) 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 across all of the 4-year schools we have data for.
What does the default rate mean?
A student is considered to be in default on a student loan if they have not made a payment in more than 270 days.
The official student loan default rate for a school is calculated by measuring how many students are in default three
years after graduation. Note that the default rate only takes into account federal loans, not private.
When compared to the average three-year default rate of 7.4%,
the default rate at Alma 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 Alma 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.