There's Always a Payback Time Students Taking out More Federal Loans for More Money, but Many Are Defaulting

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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

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