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At a time when jobs are scarce, it should come as no surprise that higher percentages of students are defaulting on their college loans. Default rates increased from 5.9 percent to 6.0 percent at public institutions, and from 3.7 to 4.0 percent at private colleges and universities, new U.S. Department of Education data show.

The news was worse at for-profit colleges, where the default rate rose from to 11.0 percent to 11.6 percent, according to a story in Bloomberg News and a press release from the U.S. Department of Education. For-profits have been under increasing fire lately. In a recent investigation, the U.S. Government Accountability Office (GAO) found fraud or deceptive marketing practices at all 15 of the for-profits it scrutinized.

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Defaults on student loans increasing, especially at for-profit colleges

by Liz Willen, The Hechinger Report
September 13, 2010

<h1>Defaults on student loans increasing, especially at for-profit colleges</h1> <p class="byline">by Liz Willen, The Hechinger Report <br />September 13, 2010</p> <div class="wp-block-image"> <figure class="alignright is-resized"><a href="https://i1.wp.com/hechingerreport.org/wp-content/uploads/loans.jpg?ssl=1"><img src="https://i1.wp.com/hechingerreport.org/wp-content/uploads/loans.jpg?resize=300%2C200&amp;ssl=1" alt="student loan defaults 2010" class="wp-image-4239" title="Loans" height="200" width="300" /></a></figure> </div> <p>At a time when jobs are scarce, it should come as no surprise that higher percentages of students are defaulting on their college loans. Default rates increased from 5.9 percent to 6.0 percent at public institutions, and from 3.7 to 4.0 percent at private colleges and universities, <a href="http://www.ed.gov/news/press-releases/student-loan-default-rates-increase-0">new U.S. Department of Education data</a> show.</p> <p>The news was worse at for-profit&nbsp;colleges, where the default rate&nbsp;rose from to 11.0 percent to 11.6 percent, according to a <a href="http://www.bloomberg.com/apps/news?pid=washingtonstory&amp;sid=aZczLxMECwUY">story</a> in Bloomberg News and a <a href="http://www.ed.gov/news/press-releases/student-loan-default-rates-increase-0">press release</a> from the U.S. Department of Education. For-profits have&nbsp;been under <a href="http://www.nytimes.com/2010/09/12/opinion/12sun2.html?ref=education_department">increasing fire</a> lately. In a recent investigation, the U.S. Government Accountability Office (GAO) <a href="http://www.gao.gov/products/GAO-10-948T">found</a> fraud or deceptive marketing practices at all 15 of the for-profits it scrutinized.</p> <p>This &lt;a target=&quot;_blank&quot; href=&quot;https://hechingerreport.org/defaults-on-student-loans-increasing-especially-at-for-profit-colleges/&quot;&gt;article&lt;/a&gt; first appeared on &lt;a target=&quot;_blank&quot; href=&quot;https://hechingerreport.org&quot;&gt;The Hechinger Report&lt;/a&gt; and is republished here under a &lt;a target=&quot;_blank&quot; href=&quot;https://creativecommons.org/licenses/by-nc-nd/4.0/&quot;&gt;Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License&lt;/a&gt;.&lt;img src=&quot;https://i0.wp.com/hechingerreport.org/wp-content/uploads/2018/06/cropped-favicon.jpg?fit=150%2C150&amp;amp;ssl=1&quot; style=&quot;width:1em;height:1em;margin-left:10px;&quot;&gt;</p> &lt;img id=&quot;republication-tracker-tool-source&quot; src=&quot;https://hechingerreport.org/?republication-pixel=true&amp;post=4238&amp;amp;ga4=G-03KPHXDF3H&quot; style=&quot;width:1px;height:1px;&quot;&gt;&lt;script&gt; PARSELY = { autotrack: false, onload: function() { PARSELY.beacon.trackPageView({ url: &quot;https://hechingerreport.org/defaults-on-student-loans-increasing-especially-at-for-profit-colleges/&quot;, urlref: window.location.href }); } } &lt;/script&gt; &lt;script id=&quot;parsely-cfg&quot; src=&quot;//cdn.parsely.com/keys/hechingerreport.org/p.js&quot;&gt;&lt;/script&gt;

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