A national trend shows that students across the country are struggling to pay back college loans, but UNC students are an exception.
The number of college students filing for loan defaults, which are filed when the first loan payment cannot be made, has increased nationwide.
But students at UNC tied with William and Mary for the best loan repayment rate in the country this year, said Shirley Ort, director of the Office of Scholarship and Financial Aid at UNC.
The first payments for student loans for the 2007 to 2008 school year were due on Sept. 30, 2009.
During that time more than 238,000 of the 3.4 million students filed a default because they could not pay their first installment, according to the U.S. Department of Education.
Loan defaults at public universities in the nation increased from 5.9 percent to 6 percent in 2008 and dropped at UNC from 0.9 percent in 2007 to 0.7 percent in 2008.
The department’s research found that the increase in default rate stems from the current economic climate and the rise of for-profit schools.
“One of the reasons the rate went up this year is the tremendous growth in enrollment in for-profit schools,” said Jane Glickman of the department’s office of communications and outreach.
At for-profit universities, which are owned by profit-seeking companies, default rates for students who attended these universities increased from 11 to 11.6 percent in 2008.
University of Phoenix, DeVry University and Capella University are examples of for-profit schools that are growing fast.
