Texas student debt: Outstanding loans, default rates and what this means

Today’s $1.3 trillion federal student debt includes $103 billion of loans in default, according an August 2015 Government Accountability Office report. Student loan amounts are at record highs and new government numbers detail just how well those debt obligations are being met. While Department of Education data shows the national student loan default rates dropping to 11.8 percent, Texas’ remains higher at 14.3 percent.

Newly released 2012 national default rates (the most current available) from the federal agency reflect a downward trend – from 14.7 percent in 2010 to 13.7 percent in 2011 to 11.8 percent in 2012. Texas rates show similar movement – from 17.3 percent in 2010 to 15.9 percent in 2011 to the 14.3 percent in 2012.

The Texas numbers represent borrowers at 301 institutions with 43,686 borrowers being in default (more than 270 days delinquent) and 305,148 borrowers having entered repayment.

Read more at Watchdog Arena.

Commentary, Featured