State student loan defaults decline

Tuesday, October 2, 2001

JEFFERSON CITY, Mo. -- Missouri's student loan default rate fell more than 1 percentage point in 1999 over 1998, the Missouri Department of Higher Education reported Monday.

The default rate in 1999 was 5.4 percent, compared to a default rate of 6.7 percent in 1998. More recent rates are not available.

A student loan is in default when a borrower has not made payments for 270 days or more. More than 2,890 Missourians defaulted on loans in 1999.

"With the significant growth in student loans and student credit card debt nationally, college affordability and student loan default prevention are among our top concerns," said Kala Stroup, Missouri commissioner of higher education.

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