Default rate on student loans holds steady

The default rate for student loans in Oklahoma has remained stable, according to an announcement Thursday by the Oklahoma Guaranteed Student Loan Program.

The rate, which the United States Department of Education uses to determine borrower success in student loan repayment, was at 5.9 percent in 2006, an increase of .1 percent from the previous year.

The rate indicates that about 94 percent of student loan borrowers in Oklahoma are repaying their federal loans, which are given without collateral or demonstrated credit history.

In a statement, Oklahoma’s higher education Chancellor Glen Johnson attributed the steady rate to early assistance and financial education programs in the state.

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