Report

Fewer Borrowers Are Repaying Their Loans Than Previously Thought
New America

Today, the US Department of Education announced a critical error in the way it had previously been calculating repayment rates across the more than 4,150 institutions that receive federal loans each year. A coding error meant that many borrowers were incorrectly considered to be paying down their loans when in fact they were not making principal payments. As a result, many schools’ repayment rates are on average a third lower than originally reported.