Student Loan Default Rates (as reported by Libby Nelson on www.vox.com)

Libby Nelson, reporting for Vox, brings us an intriguing look at student debt. It turns out that there is a strange bit of data that shows quite clearly that students with less debt are more likely to default than students with more debt.

The total outstanding debt a student has at the time they leave school can be an indication to the government and other student loan providers of how likely that student is to default. But conventional wisdom might have you believe that those students with larger unpaid loans are more likely to default.

The data actually shows the opposite has been true, with those students owing between $1,000 and $5,000 default at rates nearly 10x higher than students owing more than $100,000. For the full story, click here.

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