Friday, May 17, 2013

The latest local news, weather and high school sports in and around Columbia and Jefferson City

Missouri student loan default rate rises
Posted: 09.16.2009 at 2:16 PM
0
Slideshow
Photo:

A new report shows that the recession has more Missouri students defaulting on their students loans.

The Missouri Department of Higher Education said the default rate has jumped to about six percent, up from just over four percent last year.

However, Missouri is still below the national average.

Across the country, the default rate rose from about five percent to nearly seven percent.

"Its definitely what we would typically see, especially in a recession like this that's characterized by high unemployment," Missouri Department of Higher Education Deputy Commissioner Paul Wagner said. "That obviously has a direct link to people's ability to repay their student loans."

The default rate is still better than it was nearly 20 years ago, when over 20 percent of borrowers were not repaying their student loans.

Wagner points out that the vast majority, nearly 76,000, of Missouri's borrowers today are repaying their student loans on time.

Wagner said higher education officials expect the default to stay the same or increase more next year as economists predict the unemployment rate will remain high through 2010.

Popular Stories
Thumbnail
Sword-wielding man arrested
Yesterday at 8:25 AM  |  4 comments
Thumbnail
Woman stabs ex-boyfriend in the back
Thursday, May 16, 2013  |  9 comments
Thumbnail
Blair Oaks student to graduate two months after crash
Juliette Dryer  |  Yesterday at 8:00 AM  |  4 comments
Follow Connect Mid-Missouri
Get news and weather notifications on your phone by downloading the iPhone or Android app below
Sign up to get alerts and updates for breaking news, severe weather, and deals:
submit
ADVERTISEMENT
Special Features
Relay For Life of Cole County
Friday, June 7, at 6 p.m. at the Jefferson City Jaycees Fairgrounds
Community Connection
Participate in great causes in the community!
ADVERTISEMENT