Missouri student loan default rate rises
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Missouri student loan default rate rises

Date: September 17, 2009
By: Rebecca Stephen
State Capitol Bureau

Intro:  Missouri Department of Higher Education reports that deadbeat college graduates raised the student loan default rate. 
RunTime:  0:41
OutCue:  SOC

Wrap: The Missouri student loan default rate has gone up by more than 40 percent according to the state's department of higher education.

Missouri Department of Higher Education Deputy Commissioner Paul Wagner says the economic slowdown and Missouri's high unemployment rate both contributed to the high number.

Actuality:  WAGNER.WAV
Run Time:  00:11
Description: "They typically have to prioritize things like you know housing and food and such, and sometimes they're not able to make a payment like a student loan payment that might lead to create a default."

Wagner also said even though the default rate has gone up the majority of students do repay their loans on time.

Reporting from the State Capitol, I'm Rebecca Stephen.

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Intro:  Deadbeat college graduates cause the Missouri student loan default rate to rise according to the Missouri Department of Higher Education. 
RunTime:  0:45
OutCue:  SOC

Wrap: The Missouri Department of Higher Education reported the state's student loan default rate has gone up by more than 40 percent this year.

Missouri Higher Education Loan Authority Director Raymond Bayer says communication with loan providers and knowing the options can prevent default.

Actuality:  BAYER.WAV
Run Time:  00:16
Description: "A significant portion of the defaults that do occur are people that simply don't return phone calls, screen phone calls, don't read our letters, and what have you, and they're not even, you know they're just not responsive."

Bayer says the current economic downturn and the high unemployment rate contributed to more students defaulting.

Reporting from the State Capitol, I'm Rebecca Stephen.

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