Minnesotans are defaulting on their student loans within the first three years of leaving school at a higher rate.
Still, the state's failure rate of 11 percent is better than the national average of 14 percent.
State Office of Higher Education analyst, Tricia Grimes, tells Minnesota Public Radio News that the numbers should be placed in economic perspective.
She said the rate include students who were supposed to start repaying loans when the economy was bad.
Rates may improve as the economy gets better.
Borrowers from public two-year colleges are among the hardest hit.
They defaulted at an average rate of 18 percent.