Three 5Cs have zero percent student loan default rate, Pitzer leads with the highest rate

Pitzer College has the highest student loan default rate in the 5Cs according to data released by the Department of Education. (Regan Rudman • Student life)

Pomona College, Claremont McKenna College and Harvey Mudd College all had 0% federal student loan default rates in the 2017 federal fiscal year, according to a new publication The data from the Ministry of Education.

Default rates – which measure the percentage of the student borrower body that fails to make monthly loan payments for 270 days of the fiscal year – do not include student loan defaults on private or non-private loans. federal.

The data, released on September 30, 2020, comes from borrowers who began repaying in the 2017 federal fiscal year and who participated in the Federal Family Studies Loan Program or the Federal Direct Lending Program William D. Ford, allowing students and parents eligible to borrow directly from the US Department of Education.

With the highest default rate of 3.5, the 7Cs are significantly lower than the state and federal averages for student loan default rates: 9.7 percent and 6.4 percent for fiscal year 2017, respectively.

CMC’s default rate decreased by two percentage points compared to fiscal 2016, while Pomona had a default rate of 0% for at least two years prior to fiscal 2017.

Scripps College had a default rate of 0.90%, up from 0% in fiscal 2016. Scripps’ rate ranked 195th nationally on a list of 4,398 colleges and 45th nationwide. the state out of 455 colleges, according to EDU loan, meaning it had the 195th lowest default rate in the country and the 45th lowest default rate in the state.

Pitzer College had the highest 7C rate at 3.5%, although it was 6.5% in fiscal 2016. Pitzer was ranked 813th nationally and 162nd in California. The Pitzer rate comes from four borrowers who were in default during fiscal 2017.

Mudd had the highest number of 5C borrowers entering repayment – making monthly student loan payments – in FY2017, with a total of 140. Pitzer had 114 borrowers, Scripps 105, Pomona 83 and CMC 68.

Claremont Graduate University had a default rate of 2.3%, with 417 borrowers going into repayment and 10 in default.

The Keck Graduate Institute had a default rate of 1.6%, and 62 borrowers began to repay, with a default.

Defaulting negatively affects borrowers’ credit ratings, and other consequences may include losing access to additional federal student aid, having wages garnished, being taken to court, having their transcript withheld by their college and being charged high fees, according to Federal Student Aid website.

Due to COVID-19, the federal government has temporarily stopped requiring monthly payments and instituted a 0% interest rate until Dec.31, 2020, according to the Federal Student Aid Office.

Pomona is the only 5C that does not use financial aid loans, but students can still apply for federal loans with college help. Pitzer, CMC, Scripps and HMC all include loans under the “self-help” portion of financial assistance programs.

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