UM-Dearborn's loan default rate drops

October 11, 2010

Last month, the U.S. Department of Education released the federal loan cohort default rates and UM-Dearborn's rate dropped from 3.1 percent to 2.6 percent.

The 2.6 percent rate is the 2008 rate, the latest results available. This data is based on the cohort of borrowers whose first loan repayments came due between Oct. 1, 2007 and Sept. 30, 2008, and who defaulted before Sept. 30, 2009.

UM-Dearborn was one of nine public universities in Michigan that showed a decline. The 2.6 percent rate makes UM-Dearborn's loan default rate the sixth lowest among the 15 public state universities.

"To show a decline in this struggling economy is a good sign; an indication that our students are still able to pay back loans despite financial challenges," said Christopher W. Tremblay, interim director of financial aid and executive director of enrollment management.

Loan default rates in 2008 among the 15 public state universities ranged from Grand Valley State University's low rate of 1.3 percent to Wayne State University's high of 6.7 percent. UM-Dearborn's 2.6 percent is lower than the Michigan four-year public average of 3.2 percent. This is the ninth consecutive year that UM-Dearborn's loan default rate has been below the Michigan four-year public average.

The 2008 national cohort default rate is 7.0 percent, which is an increase of the 2007 rate of 6.7 percent.

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