Student Loan Default Rate Down

The student loan default rate has dropped sharply and government collection efforts have cut net default costs by more than two-thirds since 1992, Education Secretary Richard Riley said Monday.

“These numbers reflect real and substantial progress,” Riley said. “They are the product of several aggressive management decisions that were intended to get the default problem under control.”

The rate of borrowers defaulting on student loans dropped to 11.6 percent in fiscal 1993, the latest year for which figures are available.