Students that are borrowing college loans with the New Hampshire Higher Education Assistance Foundation, which is considered to be the state’s primary lender of student loans, default at a much lower clip than the national rate.

Fiscal year 2007 Cohort Default Rates

That is in accordance with the fiscal year 2007 Cohort Default Rates, which have been released by the U.S. Department of Education. The default rate of NHEEAF is 3.1%.

The national rate was 6.7%, which has increased from 5.2% the previous year.

NHEEAF default rate ranks seventh highest

According to NHEEAF, nationally its default rate ranks seventh highest. However, on the United States Department of Education Web site a ranking couldn’t be readily found .

It has been said by NHEEAF spokesman Tara Payne that her organization keeps its rate low by focusing on personalization and reaching out to those students and their families, who are struggling to pay back their loans.

The rate represents the cohort of those borrowers whose first loan repayments came due between Oct. 1, 2006 and Sept. 30, 2007 and who have defaulted before Sept. 30, 2008, according to the U.S. Department of Education.

Department of Education

According to the Department of Education, during this time some 3.3 million borrowers entered repayment, and more than 225,300 borrowers went into default.

Schools which are having excessive default rates may lose eligibility from one or more federal student aid programs.

It has been claimed by NHEEAF’s department that they processed 937 claims in July, estimating that it averted $2.5 million in defaulting loans costs.

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