Percentage of students who default on loans is on the rise

In the fiscal year that ended Sept. 30, 2010, 8.8% of student-loan borrowers defaulted, according to data from the Department of Education. The figure is up from a 7% default rate the previous year. "Borrowers are struggling in this economy," said James Kvaal, deputy undersecretary of education. "We see a strong relationship between student default rates and unemployment rates."

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