Before Leaving Office, Obama Administration Admits It Got Student Loan Data Wrong

Before Leaving Office, Obama Administration Admits It Got Student Loan Data Wrong

In case you ever had any doubts about the inefficiencies of the Department of Education, look no further than the recent revelation that the agency has been vastly underestimating student loan repayment rates. On the last day of the Obama administration’s tenure, the College Scorecard the department established has been quietly revealed to have serious flaws. The Obama administration conceded coding errors found in the College Scorecard inflated college repayment rates, potentially misleading students. The Wall Street Journal went as far as to report that, “on closer inspection, the mistake…

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Fewer Students Are Defaulting On Loans After Leaving College

Fewer Students Are Defaulting On Loans After Leaving College

WASHINGTON—The share of borrowers defaulting on student loans within three years of leaving college has fallen modestly, though the number remains exceptionally high despite low unemployment. Just over 11% of the 5.2 million students who left school in the fiscal year through September 2013 have since defaulted on their federal student loans, the Education Department said in an annual report Wednesday that is closely tracked by college administrators. Borrowers are considered in default once they have gone 360 days without making a payment after having left school, whether because they graduated…

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