Missouri’s student loan default rate decreased more than two-tenths of a percent for the year, according to the U.S. Department of Education, putting Missouri on par with the national average.
“We are pleased to see this steady decline in default rates in Missouri,” Missouri Higher Education Commissioner Zora Mulligan said. “Students entering repayment is a confirmation that colleges and universities are helping students to make smart financial decisions, and to only borrow what they need.”
The state’s student loan default rate dropped from 9.9 percent to 9.7 this year, while the national rate decreased from 10.1 percent to 9.7. Missouri moved from No. 26 last year up to 23 in the ranking of states in terms of student loan defaults.
More than 83,000 Missourians submitted payments in student loans over the reporting period. The data was based on default rates for borrowers whose first payment was due between October 2016 and the end of the following September and defaulted by September 2019.
More than 4.2 million Americans began student loan repayments during that period.
Missouri’s Department of Higher Education and Workforce Development (MHEWD) initiated a Default Prevention Grant Program from 2001 through 2018. The program awarded grants to universities to establish debt management programs, workshops covering financial literacy, and default prevention activities.
The grant provided nearly $10 million across more than 50 Missouri universities. MHEWD said the program would continue impacting the state’s loan default rates.
The department said it would continue to focus on promoting information on financial literacy, loan repayment, and smart borrowing to high school and college students.
Cameron Gerber studied journalism at Lincoln University. Prior to Lincoln, he earned an associate’s degree from State Fair Community College. Cameron is a native of Eldon, Missouri.
Contact Cameron at cameron@themissouritimes.com.
