Data Shows High Number Of Minnesota Students Defaulting On College Loans

Monday, October 22nd, 2012 at 11:45 am

New federal data show more than 9,500 students at Minnesota colleges and universities have defaulted on their federal student loans in the past three years.

Roughly one in seven students who borrowed federally backed money to attend public two-year colleges is behind on payments.

The Minneapolis Star Tribune reports that at the largest Minnesota-based for-profit school, Capella University, almost one in 10 student borrowers is delinquent.

Minnesota schools have an overall default rate of 9 percent, compared to the national average of 13.4 percent.

Some experts believe a lack of jobs is a primary reason why students default.

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