Texas A&M University has the best record in the state for repayment of student loans among public, non-health related universities, according to a fiscal 2007 report from the Department of Education. A&M has a default rate, or rate at which debt holders fail to pay money owed, of 2.5 percent compared to an average 9.3 percent for the state and 6.7 percent nationwide, said Scholarships and Financial Aid Assistant Provost Joseph Pettibon.
"I think it is a testament to the character of our students and to how our graduates are sought after for employment," Pettibon said.
The calculated rates apply to students who entered repayment on a Federal Stafford Loan in fiscal 2007 and defaulted on the loan in fiscal 2002 or 2008.
"A high default rate can result in loss of federal financial aid, but a low default rate like ours allows us regulatory relief from certain loan provisions," Pettibon said. "This relief benefits our students since we are not required to delay disbursements for freshmen borrowers until 30 days after the semester starts, nor do we have to disburse loans in two separate installments in a single semester for students graduating in the fall or starting school in the spring."
The report includes former students of 5,776 participating institutions nationwide. Of the 3.3 million borrowers, more than 225,300 borrowers went into default, increasing the national rate 1.5 percent.
"The best way to ensure against default is to persist in school and graduate with a degree," Pettibon said.
