The Default Rate on Student Loans is Increasing
Loan default rates can indicate how well California State University - East Bay 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
3,116 California State University - East Bay
students entered loan repayment in 2014.
After three years, 5.8% of these students
(181 out of
3,116) 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 7.2%,
the default rate at California State University - East Bay
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 California State University - East Bay 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.
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.