CBA Statement on Federal Student Loan Default Rate

September 24, 2014

CBA Statement on Federal Student Loan Default Rate
Washington, D.C. (September 24, 2014) – CBA’s President and CEO Richard Hunt issued the following statement after the U.S. Department of Education announced 13.7 percent of federal student loan borrowers defaulted within three years of repayment in fiscal year 2011.
“It is clear from its abysmal 13.7 percent default rate the federal government has much to learn from the private student lending market, which has a default rate of less than 3 percent. It is a disservice to taxpayers who are ultimately responsible for these loans -- and even more so to the students whose ability to repay the loan is not a consideration in the federal aid approval process. Strong underwriting standards, and the verification of a student’s ability to repay, is the most responsible way to ensure students begin their education on sound footing. If the CFPB is so concerned with protecting our nation’s youngest consumers, they ought to turn their focus to federal student loans which make up over 90 percent of the market.”
About CBA
The Consumer Bankers Association (CBA) is the trade association for today's leaders in retail banking - banking services geared toward consumers and small businesses. The nation's largest financial institutions, as well as many regional banks, are CBA corporate members, collectively holding two-thirds of the industry's total assets. CBA’s mission is to preserve and promote the retail banking industry as it strives to fulfill the financial needs of the American consumer and small business.

The Consumer Bankers Association is the recognized voice on retail banking issues in the nation’s capital. Founded in 1919, CBA provides leadership, education, research and federal representation on retail banking issues. For more information, please contact Tom Crosson,, (703) 869-1246 or visit