U.S. College Loan Defaults Rise to Highest Level Since 1997
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Borrowers defaulted on federal student loans at an 8.8 percent rate for fiscal 2009, up from 7 percent a year earlier, the U.S. Education Department said today.
The statistic covers borrowers whose first loan repayments were due during the year that ended Sept. 30, 2009, and who had defaulted by Sept. 30, 2010. About 320,000 out of 3.6 million borrowers in that group were in default, which the department defines as being at least 270 days late on a payment. The official 2009 rate fell slightly from an 8.9 percent estimate released in May.