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State Tech student loan default rate lower than national average
According to the U.S. Department of Education, the national student loan default rate rose from 7 percent in 2008 to 8.8 percent in 2009. Despite the 1.8 percent increase in the national student default rate, the default rate at State Technical College of Missouri increased only by .4 percent.
State Tech’s official default rate is 5 percent for 2009, up from 4.6 percent in 2008.
State Tech’s student loan default rate, as well as the state of Missouri’s default rate which rose from 5.8 percent to 7.6 percent, remains below the national average of 8.8 percent.
Dr. Donald Claycomb, president of State Tech, believes the default rate is at the level it is at State Tech due to two factors. “First, the job market for our graduates is strong and second our staff works hard to impress upon our students the importance of them meeting their financial obligations,” stated Claycomb.
The student loan default rate measures the percentage of borrowers who have stopped repaying student loans.
The information released by the U.S. Department of Education summarizes the default rates for borrowers whose first loan repayments came due between Oct. 1, 2008 and Sept. 30, 2009, and who stopped making payments before Sept. 30, 2010.
With more than 35 programs, State Technical College of Missouri is Missouri’s only public two-year technical college with a statewide mission. STC prepares students for profitable employment and a life of learning. STC has three locations in Linn, Mexico and Jefferson City.
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