- Student loan default rates continue rising (Dept. of Education): “The U.S. Department of Education today announced the official FY 2011 two-year and official FY 2010 three-year federal student loan cohort default rates (CDR). The national two-year cohort default rate rose from 9.1 percent for FY 2010 to 10 percent for FY 2011. The three-year cohort default rate rose from 13.4 percent for FY 2009 to 14.7 percent for FY 2010.” Chronicle of Higher Education provides some detailed charts which show that default rates have doubled since 2005.
From Prof. Richard Thaler, (originator of how a Nudge can be useful in financial decisions) in NY Times laments that a recent meta-analysis of financial literacy programs shows no discernible impact. In order to be successful, he urges that financial literacy programs have the following characteristics: Continue reading