Report Shows Profile of Borrowers Who are Likely to Default on Student Loan Debt

The Urban Institute, a non-profit research institute, released a report on the trends seen with borrowers who are more likely to default on their student loan debt. As noted in the report’s executive summary, 250,000 federal loans go into default every quarter, with an additional 20,000 to 30,000 of rehabilitated student loans also re-defaulting. 

The report used a random 2% sample of United States consumers from one of the three national credit bureaus. The report followed a set of borrowers from their first year of repayment in order to track trends before and during repayment as well as after default, anchoring on borrowers who began repayment in 2012.

The report found the following:

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