Default Rate 3 Points Lower than Nation’s 9.70% Average
North Carolina Central University’s student loan default rates are among the lowest in the nation for the 2020-21 academic year, according to finance website LendEDU.
Using recent data from the U.S. Department of Education, LendEDU analyzed respective student loan default rates at 4,398 colleges and universities across the country. In addition to each state’s collective default rate, the judges examined rates in specific categories like historically black colleges and universities (HBCUs).
NCCU’s 6.90% default rate earned a No. 38 ranking out of 123 schools within the state of North Carolina and a No. 1,685 ranking nationally. NCCU also had the lowest default rate among all HBCUs in the state. Furthermore, NCCU’s default rate was well below the national rate of 9.70%, and has averaged 8.3% over the past three years.
“North Carolina Central University’s student loan debt percentage proves that we are preparing our students to be financially successful post-graduation,” said Allicia Golden, default manager in the NCCU Office of Scholarships and Financial Aid. “Through the financial literacy sessions that we offer students beginning their first year at NCCU, our scholars are learning to become responsible borrowers and have a better understanding about managing the debt they accrue while in college.”
Student loan debt in the U.S. is now $1.56 trillion and the second-highest consumer debt category, behind mortgage debt. A federal student loan is considered to be in default if payment is late by 270 days, or roughly nine months. Private student loan default varies by lender, but a payment that is three to four months late will typically trigger default.
Approximately $124.4 billion in U.S. student debt is in defaulted student loans.
Created in 2014, LendEDU aims to assist consumers and business owners make educated decisions regarding financial products and strategies.
