The Default Rate on Student Loans is Increasing
Loan default rates can indicate how well American River 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
1,001 American River College
students entered loan repayment in 2016.
After three years, 17.3% of these students
(174 out of
1,001) 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 9.3%,
the default rate at American River College
is poor. This could indicate that students attending American River College are relying heavily
on student loans, including unsubsidized student loans.
Review financial aid offers carefully and be honest with yourself about whether you can truly afford this college. If you will need to utilize loans each year, be sure to calculate the total amount borrowed after four to five years, and an estimated monthly payment. If your loan includes an unsubsidized amount, can you afford to make the interest payments while you are attending college? If not, be sure to add that to the total.
Asking the tough questions now can help prevent you from starting your future with a large amount of debt that you cannot reasonably afford.
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.