Student Loan Default Studies Need To Look At Student Background

New Department of Education data show that 25% of borrowers who attended for-profit colleges and entered repayment on their loans in 2008 had defaulted within three years. By comparison, 10.8% of those attending public institutions defaulted and 7.6% of those attending private institutions defaulted. At community colleges, 18% of borrowers defaulted on their loans within three years of leaving college in 2008. But for profit colleges claim that there students are more low income than those in other postsecondary sectors. Until we know the socio-economic background of students, it is difficult to conclude much from these raw numbers of defaults.

2 comments on “Student Loan Default Studies Need To Look At Student Background”

  1. Wait, why?

    The fact that students are low income, even after attending those for-profit schools, is the problem.

    The fact that 25 percent of students from for-profit schools default after three years is not evidence of some carryover bad financial habits from impoverished childhoods; it actually seems to indicate that they don’t make enough money after graduating to pay off the debt they incurred. We don’t need to “know the socio-economic background of students” to figure out whether or not this is cause for concern. Socio-economic background is irrelevant. These people went to schools, assumed large debt to do so, and now don’t make enough money to service that debt. Period.

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