For-profit college default rate spikes; industry hits back

Some for-profit colleges have default rates of more than 25 percent.

Colleges and universities of every kind have seen student loan default rates jump this year, with for-profit schools that have recently come under government scrutiny recording the sharpest increase in defaults.

For-profit colleges and the industry’s lobbyist groups criticized a new report from the U.S. Department of Education (ED), released Sept. 12, that showed 15 percent of for-profit college students have defaulted on their school loans, marking a four-percent increase.

The report focuses on students who should have begun repaying their academic loans in 2009. Overall, the national student loan default rate rose from 7 percent to 8.8 percent.…Read More