KUNM

student loans

Photo: thisisbossi via Flickr

New Mexico has the highest student loan default rate in the nation and a lack of local loan servicing providers may be to blame. We went from a 12.8 percent student loan default rate in 2009 to a 20.8 percent rate in 2011.

credit: Nic McPhee / Creative Commons

With college graduation right around the corner some New Mexico lawmakers are drawing attention to a bill in Congress that would allow people to refinance their old student loans with the federal government for lower interest rates.

So far 32 lawmakers have signed onto the measure, including New Mexico’s Senator Martin Heinrich, who says the government shouldn’t be in the business of predatory lending.

“I don’t think we should be financing our government operations by charging high interest rates to student loans,” Heinrich said.