Department of Education published their Orange Book for the Perkins Loan program showing that 10.04% of borrowers entering repayment in 2007-08 defaulted by September of 2009. The comparable number for 2006-07 cohort was 8.32%. The average Perkins loan in default was just over $1,950 for the 2007-08, which is up from almost $1,800 from the earlier cohort.
- The Perkins CDR is higher than the draft 2008 cohort default figures for the federal student loan program, which were recently announced at 7.2%. It also showed a more dramatic increase in going from 8.32% to 10.04% then the federal student loan CDR wich grew from 6.7% to 7.2%. Given that these loans are going only to the neediest students, it probably shouldn't be a surprise that the default rates have risen faster than for the federal loan programs.