The Default Rate on Student Loans is Increasing
Loan default rates can indicate how well Allen 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
185 Allen College
students entered loan repayment in 2013.
After three years, 1.6% of these students
(3 out of
185) 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 Allen College
is excellent. It is a good indication that the financial needs of a typical student are being met in such a way that
reliance on loans, particularly unsubsidized student loans, is minimized.
Did You Know?
Declaring bankruptcy does not remove student loan debt owed to the Federal government.
They can garnish part of your income if you do not pay back your loans.
Subsidized vs. Unsubsidized Loans
What's the difference? Unsubsidized student loans accrue interest each month, even while you are in college.
Unless you pay that interest each month, what you owe after graduation might surprise you.