The default rate actually drops as the amount borrowed increases, that is, default rates are highest among those with the smallest student loan debts.

Question

Quizplus · Accepted Answer

This is a true statement. Studies have shown that students with smaller loan debts are more likely to default on their loans than those with larger debts. This is believed to be due to a combination of factors, including lower earnings potential and a higher likelihood of dropping out of college before completing their degree.

The Default Rate Actually Drops as the Amount Borrowed Increases