Greg McGovern bucked the odds in his first two years of college.
He worked enough, and saved enough, to put himself through
school without borrowing. But when he enrolled full-time,
McGovern followed a familiar path.
He took out a federal student loan. In his case, the $9,000
loan is unsubsidized. Interest will accumulate at 8.25 percent
over the remaining year of his enrollment at the University of
North Florida. And he likely will have to take out another loan
next year before graduating with a sociology degree.
"It bothered me, but it's a necessity," McGovern said.
His assessment is backed by a variety of federal statistics.
The most recent data shows more American students are turning to
federal loans to finance their educations, and borrowing
substantially more than their predecessors.
And while recent data shows the overall rate of defaults on
student loans is dropping, students who attended traditional