Private Student Loan Defaults to Decline Further in 2014: Moody's

March 19, 2014
American Banker 
student loan news
While default rates on private student loans will continue to come down this year, Moody's warns that lingering fallout from the financial crisis will keep them from bouncing back to pre-recession levels.

"The default rate will remain higher than it was before the recession, so long as unemployment, a key driver of student loan defaults, remains high," explained Moody's analyst and report author Stephanie Fustar. "Moreover, even as the unemployment rate improves, high student loan debt, persistent underemployment and lower earnings will continue to make it difficult for graduates to make their loan payments."

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