Report: R.I. student loan default rate ranks No. 4 lowest in U.S. in FY16

RHODE ISLAND had the fourth-lowest student loan default rate in the nation in fiscal year 2016. / BLOOMBERG FILE PHOTO/MICHAEL OKONIEWSKI
RHODE ISLAND had the fourth-lowest student loan default rate in the nation in fiscal year 2016. / BLOOMBERG FILE PHOTO/MICHAEL OKONIEWSKI

PROVIDENCE – Rhode Island had the fourth-lowest student loan default rate in the United States at 6.29% in fiscal year 2016, according to a report released by LendEdu Tuesday.

Of the 19,675 borrowers in repayment to Rhode Island higher education institutions in fiscal 2016, 1,238 were in default. Student loan payments are considered in default when payments are 270 days late or more.

The national overall default rate for the 2016 fiscal year was 10.10%. The report used the most recent data from the U.S. Department of Education.

The report sorted colleges and universities by state, rather than borrowers’ place of residence.

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New England student loan default rates by state for fiscal year 2016:

  • Massachusetts ranked No. 1 at 5.82% with 97,427 borrowers in repayment and 5,666 borrowers in default.
  • Vermont ranked No. 2 at 6.17% with 10,396 borrowers in repayment and 641 borrowers in default.
  • Rhode Island ranked No. 4 at 6.29% with 19,675 borrowers in repayment and 1,238 borrowers in default.
  • Maine ranked No. 23 at 9.86% with 18,937 borrowers in repayment and 1,867 borrowers in default.
  • New Hampshire ranked No. 26 at 10.25% with 40,902 borrowers in repayment and 4,193 borrowers in default.
  • Connecticut ranked No. 34 at 11.03% with 47,731 borrowers in repayment and 5,266 borrowers in default.

Nevada had the highest student loan default rate in the U.S. in fiscal 2016 at 18.16% with 32,259 borrowers in repayment and 5,859 borrowers in default.

The report noted for-profit schools tended to have higher default rates than other schools.

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