Student loan default data highlights for-profits

[TwixVoy]

Source: AP

More than one in five borrowers of federal student loans who attend for-profit colleges default within three years of beginning repayment, new figures made available by the U.S. Department of Education on Monday show.

Historically, the government has reported such figures in terms of how many students default within two years — a figure that stands at 6.7 percent of student borrowers overall and about 11 percent at for-profit schools.

But the new three-year numbers, though preliminary, give a clearer picture of whether a student at a particular school will default, and the government will soon begin using them to help decide which colleges qualify for taxpayer-supported student aid programs.

Currently, schools with default rates over 25 percent for three straight years can be disqualified, but experts argued that schools were gaming the two-year figures. So starting in 2012, colleges will be judged on how many students default within three years of starting repayment, though the new threshold default rate for sanctions will be 30 percent instead of 25 percent.

Read more: http://news.yahoo.com/s/ap/20091214/ap_on_re_us/us_student_loans_defaults;_ylt=Agu4esv2QTXnzG0FofxTiX9H2ocA;_ylu=X3oDMTE1a2NiOGpqBHBvcwMxBHNlYwN5bi1jaGFubmVsBHNsawNzdHVkZW50bG9hbmQ-

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Many here know I have been saying for the past year that I believe student loans will become a MAJOR problem for this generation. (I am talking bankrupt/life destroying situation)

According to this 20% of students default in the first 3 years of starting to pay. With the lack of jobs, wages not keeping up with inflation, increasing cost of college, and increasing predatory nature of lenders I would expect this trend to increase in the next several years.

[hayu_lol]

1. Actually, if our 'leaders' are smart, unless conditions...

suddenly change for the better, should consider forgiving many of these loans...or even all of them. Many of the grads from several years back had good jobs...then came the downsizing, offshoring, and all the other evils that have come from the last few years.

Our needs as the people of this nation are not being met.

[TwixVoy]

2. How naive are you?

In case you haven't noticed the primary goal of Washington has been sending boat loads of cash to banks and the ultra rich.

And you think suddenly they are going to start forgiving debt for the common person? Don't count on it.

[WriteDown]

5. Not a good idea....

I worked full-time when I was in school just to avoid student loans. Even then I had to rely on some grants. Cost me a social life for many years and deprived me of many hours of sleep. Does your plan involve me getting a reimbursement check.

[JCMach1]

3. This is only going to get worst as college costs spiral out of control

Private? Public?

What's the difference these days... they are all too expensive.

[Nordmadr]

4. I do not even know how this is remotely

possible for the average person.

Private school tuition in my area:

Syracuse University: $33,630

LeMoyne: $25,110

Cornell: $37,954

This is just undergraduate tuition. Unbelievable.

Nordmadr