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Student Loans: Default Rates at Historically Black Colleges and Universities

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Report Type Reports and Testimonies
Report Date Jan. 21, 1997
Report No. HEHS-97-33
Subject
Summary:

Of the $26.2 billion in federal student loans made in fiscal year 1995, $731 million--or about three percent--was made to students attending historically black colleges and universities. This percentage remained steady during fiscal years 1991-95. For fiscal year 1993, the average loan default rate for historically black colleges and universities was 21.1 percent. The average for other colleges and universities was 7.2 percent. These percentages remained relatively constant throughout fiscal years 1991-93. If the default rates for historically black colleges and universities remain the same for fiscal years 1994-96 as they were for fiscal years 1991-93, 22 of these institutions could lose their eligibility for federal student loan programs in fiscal year 1998, after their exemption from default rate requirements expire.

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