Skip to content
ADVERTISEMENT
Sign In
  • Sections
    • News
    • Advice
    • The Review
  • Topics
    • Data
    • Diversity, Equity, & Inclusion
    • Finance & Operations
    • International
    • Leadership & Governance
    • Teaching & Learning
    • Scholarship & Research
    • Student Success
    • Technology
    • Transitions
    • The Workplace
  • Magazine
    • Current Issue
    • Special Issues
    • Podcast: College Matters from The Chronicle
  • Newsletters
  • Events
    • Virtual Events
    • Chronicle On-The-Road
    • Professional Development
  • Ask Chron
  • Store
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
  • Jobs
    • Find a Job
    • Post a Job
    • Professional Development
    • Career Resources
    • Virtual Career Fair
  • More
  • Sections
    • News
    • Advice
    • The Review
  • Topics
    • Data
    • Diversity, Equity, & Inclusion
    • Finance & Operations
    • International
    • Leadership & Governance
    • Teaching & Learning
    • Scholarship & Research
    • Student Success
    • Technology
    • Transitions
    • The Workplace
  • Magazine
    • Current Issue
    • Special Issues
    • Podcast: College Matters from The Chronicle
  • Newsletters
  • Events
    • Virtual Events
    • Chronicle On-The-Road
    • Professional Development
  • Ask Chron
  • Store
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
  • Jobs
    • Find a Job
    • Post a Job
    • Professional Development
    • Career Resources
    • Virtual Career Fair
    Upcoming Events:
    College Advising
    Serving Higher Ed
    Chronicle Festival 2025
Sign In
Ticker circle logo

The Ticker

Breaking news from all corners of academe.

13.4% of Students Defaulted on Loans Within 3 Years of Repayment, U.S. Says

By Nick DeSantis September 28, 2012

More than one out of eight student-loan borrowers who entered repayment from October 1, 2008, to September 30, 2009, defaulted within three years, the U.S. Education Department

To continue reading for FREE, please sign in.

Sign In

Or subscribe now to read with unlimited access for as low as $10/month.

Don’t have an account? Sign up now.

A free account provides you access to a limited number of free articles each month, plus newsletters, job postings, salary data, and exclusive store discounts.

Sign Up

More than one out of eight student-loan borrowers who entered repayment from October 1, 2008, to September 30, 2009, defaulted within three years, the U.S. Education Department announced on Friday as part of its first release of official data on cohort default rates for federal student loans measured over three years.

The new figure on overall default rates, 13.4 percent, was released as the department switches from measuring the rates over three years instead of two. For-profit institutions had the highest average three-year default rates, at 22.7 percent, which was more than double the 11-percent rate among public institutions. Private, nonprofit institutions had an average three-year default rate of 7.5 percent.

The department also announced that two institutions—the Centro de Estudios Multidisciplinarios, in San Juan, Puerto Rico, and Tidewater Tech, in Norfolk, Va.—faced possible sanctions for having two-year default rates of 25 percent or more. Unless they bring successful appeals, those institutions stand to lose their eligibility to participate in federal student-aid programs.

ADVERTISEMENT

No institutions will face sanctions based on the new three-year rates until three years of data have been collected, though institutions with rates of 30 percent or higher must create a default-prevention task force and submit a management plan to the department.

The department said 218 institutions had three-year default rates above 30 percent, and 37 institutions had three-year default rates higher than 40 percent.

For more, see this article, with data, from The Chronicle.

We welcome your thoughts and questions about this article. Please email the editors or submit a letter for publication.
Share
  • Twitter
  • LinkedIn
  • Facebook
  • Email
About the Author
Nick DeSantis
Nick DeSantis, who joined The Chronicle of Higher Education in 2012, wrote for the publication’s breaking-news blog, helped coordinate daily news coverage, and led newsroom audience-growth initiatives as assistant managing editor, audience. He has also reported on education technology, with a focus on start-up companies and online learning.
ADVERTISEMENT
ADVERTISEMENT

More News

PPP 10 FINAL promo.jpg
Bouncing Back?
For Once, Public Confidence in Higher Ed Has Increased
University of California, Berkeley chancellor Dr. Rich Lyons, testifies at a Congressional hearing on antisemitism, in Washington, D.C., U.S., on July 15, 2025. It is the latest in a series of House hearings on antisemitism at the university level, one that critics claim is a convenient way for Republicans to punish universities they consider too liberal or progressive, thereby undermining responses to hate speech and hate crimes. (Photo by Allison Bailey/NurPhoto via AP)
Another Congressional Hearing
3 College Presidents Went to Congress. Here’s What They Talked About.
Tufts University student from Turkey, Rumeysa Ozturk, who was arrested by immigration agents while walking along a street in a Boston suburb, talks to reporters on arriving back in Boston, Saturday, May 10, 2025, a day after she was released from a Louisiana immigration detention center on the orders of a federal judge. (AP Photo/Rodrique Ngowi)
Law & Policy
Homeland Security Agents Detail Run-Up to High-Profile Arrests of Pro-Palestinian Scholars
Photo illustration of a donation jar turned on it's side, with coins spilling out.
Financial aid
The End of Unlimited Grad-School Loans Could Leave Some Colleges and Students in the Lurch

From The Review

Illustration of an ocean tide shaped like Donald Trump about to wash away sandcastles shaped like a college campus.
The Review | Essay
Why Universities Are So Powerless in Their Fight Against Trump
By Jason Owen-Smith
Photo-based illustration of a closeup of a pencil meshed with a circuit bosrd
The Review | Essay
How Are Students Really Using AI?
By Derek O'Connell
John T. Scopes as he stood before the judges stand and was sentenced, July 2025.
The Review | Essay
100 Years Ago, the Scopes Monkey Trial Discovered Academic Freedom
By John K. Wilson

Upcoming Events

07-31-Turbulent-Workday_assets v2_Plain.png
Keeping Your Institution Moving Forward in Turbulent Times
Ascendium_Housing_Plain.png
What It Really Takes to Serve Students’ Basic Needs: Housing
Lead With Insight
  • Explore Content
    • Latest News
    • Newsletters
    • Letters
    • Free Reports and Guides
    • Professional Development
    • Events
    • Chronicle Store
    • Chronicle Intelligence
    • Jobs in Higher Education
    • Post a Job
  • Know The Chronicle
    • About Us
    • Vision, Mission, Values
    • DEI at The Chronicle
    • Write for Us
    • Work at The Chronicle
    • Our Reporting Process
    • Advertise With Us
    • Brand Studio
    • Accessibility Statement
  • Account and Access
    • Manage Your Account
    • Manage Newsletters
    • Individual Subscriptions
    • Group and Institutional Access
    • Subscription & Account FAQ
  • Get Support
    • Contact Us
    • Reprints & Permissions
    • User Agreement
    • Terms and Conditions
    • Privacy Policy
    • California Privacy Policy
    • Do Not Sell My Personal Information
1255 23rd Street, N.W. Washington, D.C. 20037
© 2025 The Chronicle of Higher Education
The Chronicle of Higher Education is academe’s most trusted resource for independent journalism, career development, and forward-looking intelligence. Our readers lead, teach, learn, and innovate with insights from The Chronicle.
Follow Us
  • twitter
  • instagram
  • youtube
  • facebook
  • linkedin