Loan Default Rate

LUTHER COLLEGE LOAN DEFAULT RATE

The rate is a 3-year rate.

2015—Draft Rate 1.8
2014 2.2
2013 1.1
2012 2.5

Because the national loan default rate is used to determine whether colleges are eligible to receive federal student aid, the national student loan default rate is one of the most closely watched metrics in higher education

  • The national cohort default rate is 11.5%
  • The average cohort default rate among private four-year colleges is 7.0%
  • The average cohort default rate among all Iowa colleges is 12.6%

What is a cohort default rate?

Each year the U.S. Department of Education calculates a cohort default rate on Federal Direct Loans by institution. A cohort default rate by definition is the percentage of a school's borrowers who enter repayment on certain Direct Loans during that fiscal year and default within the cohort default period (the end of the following fiscal year for a three-year rate).