The long - term average default rate is 4.2 %. (dhunplugged.com)
For borrowers entering repayment in 2014, the national average default rate on federal student loans was 11.5 percent, a 1.77 percent increase from the 2013. (studentloans.net)
In these circumstances, banks will respond to higher cash rates by rationing credit, to ensure that their average default rates remain low. (rba.gov.au)