Nationally, alums of Ohio University are the second-most likely to default on their loans after graduation among large public universities.
As if worrying about paying college costs wasn’t enough for Ohio University students, now the fear of not being able to pay back student loans is on the table as well.
OU ranked second nationally for three-year loan default rates among large public universities, according to data released by the U.S. Department of Education.
Defaulting means an individual is unable to make payments on a loan for 270 days, or nine months.
At 15 percent, OU is below the state average of 16.7 percent, but above the national rate of 13.7 percent.
OU officials were unwilling to comment by press time, citing the need to “provide thorough and accurate info” on the topic.
“There are less and less jobs so its going to be harder for me to find a job,” said Gentry Bennett, a sophomore studying strategic communication. “If I (get a job) it would be lower paying so I definitely see a possibility for me to default on my loans.”
Consequences of defaulting on a loan include one’s wage being withheld by employers, losing out on tax refunds or Social Security checks and seeing a decrease in one’s credit score, according to the Consumer Financial Protection Bureau.
According to a Quartz article, OU is among six other Ohio public schools to rank in the top 20 for highest default rates at large institutions with at least 5,000 students going into repayment mode in fiscal 2011.
Other public universities in Ohio also placed prominently in the national data.
Kent State University, University of Akron, University of Toledo, Bowling Green State University and the University of Cincinnati ranked third, fifth, sixth, 12th and 17th, respectively.
Default rates for OU graduates have risen in the three most recently calculated fiscal years.
From 2009 to 2010, OU’s rate increased from 8.7 percent of borrowers defaulting to 13.8 percent. Approximately 1,200 individuals defaulted on their loans for fiscal year 2011.
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