Students Loan Defaults
5.6 percent of Nebraskans defaulted on their federal student loans in 2009, The U.S. Department of Education said. It was the most recent year for that numbers is available. It still is an increase from3.9 percent in 2007 and 5 percent in 2008 though well below the national rate of 8.8 percent. In 2009, Iowa’s default rate was much higher: 11.5 percent. It was 9.9 percent in the year before and 8.2 percent in 2007.
The second-largest source of U.S. household debt behind mortgages is Student loans are. Total outstanding student debt in the United States is more than the nation owes on credit cards. It has passed $1 trillion. Iowa’s higher rate, compared with five in Nebraska. It might be due to the significant number of community colleges in the state, 15, a spokeswoman for the Iowa College Student Aid Commission Heather Doe said. The vocational schools in Iowa also factor in.
Before students earn a certificate or degree, more of them who enroll in them quit school even though tuition in those institutions is typically lower than at four-year universities. For-profit vocational schools and community colleges in both states had the highest rate of defaults while private colleges and state universities had the lowest.
