Monday, May 23, 2011

Loan Default Rates Studied





Students who attended for-profit schools defaulted on their tuition loans at considerably higher rates than students who went to private or publicly-funded colleges and universities, according to U.S. Education Department data issued on Friday.

The figures come as the department nears release of a rule expected to deny federal loans for programs where a high proportion of former students are failing to repay.

Students who attended for-profit schools and began repaying their loans in fiscal 2009 have defaulted at a rate of 15.2 percent, the government said. That compared with 7.3 percent for former public school students and 4.7 percent for private schools.

The 2009 data is a draft, and tracks students who defaulted on or before the government's fiscal 2010 year ended Sept. 30.

READ MORE:

http://hken.ibtimes.com/articles/149848/20110523/for-profit-schools-default-rates-higher-us-ed-dept.htm

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