The Vermont Student Assistance Corporation has the lowest default rate for education loans in the country, according to figures released by the U.S. Department of Education. Vermont’s one percent default rate compares to a national rate of five-point-two percent, which is also an all-time low. The figures are from fiscal year 2002.
U.S. Secretary of Education Rod Paige says historically low interest rates and a focus among lenders on debt repayment have contributed to the low national default rate. VSAC President Don Vickers says Vermont students taking out loans from VSAC tend to complete their education, which makes loan repayment easier. But he says defaults could become a problem as student and parent debt continues to rise.