When no-preference freshman Alyssa Fein decided to attend Michigan State University, she knew she would need financial assistance to pay for tuition.
Fein is one of the thousands of MSU students who have taken out a student loan to help offset rising tuition costs. But according to the Department of Education, the number of students defaulting on those loans is on the rise.
The 2009 national student loan cohort default rate released Monday showed the number of students who defaulted on their loans in 2009 rose to 8.8 percent, up from 7 percent in 2008, making this year’s rates the highest they have been in 12 years.
The trend on loan defaults extended to MSU with university students’ default rate rising from 1.7 percent in 2007 and 2008 to 3 percent in 2009.
Still, the number is below the statewide average of 8.2 percent and the national average.
Students who can’t make a loan payment because of a lack of income can apply for forbearance, allowing them to forego payment for a one-year term. The forbearance process can be renewed for up to three total years, said Val Meyers, associate director of the Office of Financial Aid.
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