The Minnesota Office of Higher Education monitors debt trends and evaluates state financial aid policies. In Fiscal Year 2016, Minnesota undergraduates received $1.1 billion from federal student loan programs.
Undergraduates attending Minnesota's colleges were less likely to default on federal student loans than their peers nationally, according to information published by the U.S. Department of Education. Minnesota undergraduate borrowing has declined slightly in recent years.
Minnesota's Fiscal Year 2014 three-year default rate was 8.9 percent, increasing from 8.8 percent in Fiscal Year 2013. The number of students defaulting; however, decreased slightly from 14,062 to 14,018. Minnesota's three-year default rate ranked ninth lowest compared to other states. West Virginia (18.3 percent) had the highest rate and North Dakota (6.4 percent) had the lowest rate. Nationally, the Fiscal Year 2014 default rate was 11.5 percent, increasing from 11.3 percent in 2013. Both in Minnesota and nationally, students attending public two-year colleges were more likely to default than students attending other types of institutions.
Undergraduates Attending Minnesota Institutions Have Lower Default Rates than National Comparisons, 3-Year Default Rates, FY 2014
Source: U.S. Department of Education
|State||Number of Schools||Number of Borrowers in Default||Number of Borrowers Entered Repayment||Borrower Default Rate|
Calculated September 27, 2017
Source: U.S. Department of Education, Office of Student Financial Aid Programs
The U.S. Department of Education releases official cohort default rates once per year.
A three-year cohort default rate is the percentage of a school's borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), October 1 to September 30, and default or meet other specified conditions prior to the end of the second following fiscal year.
Colleges and universities with consistently high student loan default rates over a period of three years may be denied participation in federal and state financial aid programs for their students. No institutions in Minnesota have been denied participation in recent years.
3-Year Cohort Default Rates at Minnesota Institutions Trends (published September 2016)
Related Information in Minnesota Measures