Student loan default rates continue steady climb

The percentage of borrowers who defaulted on federal student loans within two years of starting repayment has increased for the sixth year in a row, while the rate for defaults measured over a three-year period rose by a similar amount, according to figures released last Monday by the US Department of Education, writes Andy Thomason for The Chronicle of Higher Education.

The latest two-year default rate, which applies to borrowers who began repaying loans from 1 October 2010 to 20 September 2011, was 10% – the highest rate in nearly two decades. It was up from 9.1% among the previous year's cohort.
Full report on The Chronicle of Higher Education site