FIU student loan default rate drops to 8.9 percent


FIU default rate.jpgBy Joel Delgado ’12, MS ’17

New data compiled by the U.S. Department of Education found that fewer students are defaulting on their federal sudent loans – and FIU students are ahead of the curve.

The official three-year federal loan cohort default rate for FIU, the percentage of students who enter repayment on certain loans during a federal fiscal year and default prior to the end of the second following fiscal year, dropped to 8.9 percent. That number is down from a 10.5 percent rate for FIU students entering repayment in 2010.

The official national default rate stands at 13.7 percent.


Related: 8 tips for managing your student loans


According to Default Prevention Coordinator Gabriela Mendez, the goal is to eventually get FIU’s rate down to 5 percent. She says in order to reach that mark, educating students and graduates on their options for repaying their student loans and continuing to improve retention efforts will be crucial.

“It has become a national issue with student debt being as high as it is. What you borrow now will follow you after you graduate, and it is a big responsibility,” Mendez said.

With FIU providing more than $170 million in grants and scholarships from institutional, state and federal sources, most students don’t have to take out hefty loans to get their degree. As of 2013, 28 percent of FIU students take out loans.

Mendez works with students and graduates to make sure that they understand the responsibilities associated with taking out a loan and helps them select a repayment plan to pay off their student loan debt.

“We want students to be proactive and informed regarding their student loan debt,” Mendez said.

According to U.S. News & World Report’s 2015 edition of Best Colleges, the average amount of debt carried by FIU’s class of 2013 was $17,893, which is below the national average student debt of $25,550 for public university graduates.

FIU is the top Florida school in this category and is ranked number 13 among institutions whose students graduate with the least debt load.

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