Defaults on federal student loans declined from a year earlier, as the U.S. government bolsters programs to prevent borrowers from skipping payments, Bloomberg News reported yesterday. The rate, measured over the first three years that borrowers are required to pay their loans, was 13.7 percent, down from 14.7 percent last year, the Education Department said yesterday. The data encompasses borrowers who would have begun paying in 2011. The data covers student borrowers through Sept. 30, 2013, and shows the share that haven’t made required payments for at least 270 consecutive days. It includes both those who graduated from their programs and those who dropped out. President Barack Obama and the Education Department have tried to stem defaults by publicizing several income-based repayment plans for those who are struggling. Under the programs, borrowers pay a certain percentage of their discretionary income. The Department last November began a campaign to e-mail about 3.5 million borrowers about repayment options.
