debtconsolidationconnection.com
501 (c)(3) non-profit Organization
Free Consultation
Arizona tops list of most student loan defaults
By Oscar Monfort on Sep 15th, 2010
More students are looking to federal loans to attend the colleges of their choice, meaning the rate of education-related debt across the country is continuing to rise. In Arizona, the federal student loan default rate has rose to 10.9 percent, making it the worst in the nation, according to new data from the U.S. Education Department.
Between Oct. 1, 2007 and Sept. 30, 2008, 24,531 students that attended Arizona colleges defaulted on their loans, the Arizona Daily Star reports. At that time, the national default rate was 7 percent, Education Secretary Arne Duncan said this past week.
"This data confirms what we already know: that many students are struggling to pay back their student loans during very difficult economic times," Duncan said in a news release. "That's why the administration has expanded programs like income-based repayment and Pell Grants to help students in financial need."
Borrowers in danger of defaulting can seek debt counseling to develop a repayment plan with an expert. This may spare additional debt and credit score damage in the future.
More Consumer Credit Counseling News
