Student Loan & Student Loan Consolidation Program Defaults Low
U.S. Secretary of Education Margaret Spellings says that student loan default rates fell from 5.1% to 4.6% since last year, a new historic low. She goes on to say that a record number of student loan consolidations contributed to the drop in student loan defaults.
According to Spellings the relief offered to victims of hurricanes Katrina and Rita.
All-in-all this is just another sign that points to the fact that students are becoming wise to the benefits of a student loan consolidation program. Locking in a low interest rate, consolidating multiple payments, and lowering the total amount due monthly are the main factors attracting borrowers to student loan consolidation programs.
There are more reports expected soon from the U.S. Department of Education outlining specific details drilled down by state and institution. If any of them have any interesting information in them we will let you know.
