Contact: Sandy Connolly, Director of Communications
Office of Higher Education
Slightly more Minnesotans defaulted on their federal student loans in 2007 than in previous years, according to the most recent data available from the U.S. Department of Education. The two-year default rate for students who attended postsecondary institutions in Minnesota was 3.3 percent for 2007, compared to 6.7 percent nationally. Compared to the nation, Minnesota was among those with the smallest percentage of borrowers defaulting -- five states had lower default rates and 48 states and territories had higher default rates. The federal default rate counts the borrowers who were due to begin repayment in one federal fiscal year who defaulted in that year or the next federal fiscal year.
2-Year Default Rates on Federal Student Loans
In 2008, 78 percent of students who earned a bachelor's degree in Minnesota graduated with student loans and the average amount borrowed was 26,100. The Minnesota Office of Higher Education monitors student debt trends and administers a state student loan program.