Miller Statement on 2009 Default Rate for Student Loans

WASHINGTON, D.C. – U.S. Rep. George Miller, senior Democrat on the Education and the Workforce Committee, today issued the following statement after the U.S. Department of Education released the national student loan cohort default rate for students who defaulted before September 30, 2010. The default rate rose to 8.8 percent, up from 7 percent in 2008. This group of students defaulted on loan payments first owed between October 1, 2008 and September 30, 2009.

 

“Earning a college degree should not require students to mortgage their future. But unfortunately, in these tough economic times with rising college costs, we’re seeing the effects of mounting debt in the form of increased default rates. The Democratic Congress made college affordability a top priority and the Obama administration has continued that effort. I remain deeply concerned about the cost of college and hope we can address these issues more proactively soon.”

 

In California, the default rate rose to 7.8 percent, up from 6.7 percent. According to the Department, the default rate increased among all college sectors, including from 6 percent to 7.2 percent for public institutions, from 4.0 percent to 4.6 percent for private institutions, and from 11.6 percent to 15 percent at for-profit schools.

 

To learn more about college affordability measures enacted under Democratic leadership, click here.