Re consolidating federal student loans
Private nonprofit four-year student had the lowest default rate at 17.2%.They were followed by students who attended public nonprofit four-year institutions. nonselective The Fed’s analysis found students who attended colleges that were more selective or competitive defaulted at lower rates that those who attended less-selective colleges.
According to Fed data, 28% of students who left college between 20 defaulted on their student loans within five years.
That’s significantly higher than the students who left school five years earlier, between 20, of which only 19% defaulted within five years. Not only will someone who defaults on a student loan need to deal with collections calls, but a default can seriously harm a borrower’s credit rating, making it difficult to qualify for a personal loan or other large credit purchases like a new home.