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Default rate at US for-profit schools UP to 15 PERCENT

Via: Reuters

New U.S. Education Department figures show rising default rates on student loans with the sharpest increase among students at for-profit trade schools and colleges.

For students in the for-profit sector, the default rate for those who should have started paying back loans in the 2009 fiscal year rose to 15 percent from 11.6 percent for those whose payments began in 2008.

Overall, student default rates rose to 8.8 percent from 7 percent for students at all types of post-secondary schools, the department said.

High default rates can penalize schools under a government crackdown on poor graduation rates in some programs.

The toughest rule would ban schools from taking students with federal loans if at least 35 PERCENT of graduates and dropouts of programs are not paying back their loans, or meet other criteria.

A trade group of 1,500 for-profit schools, the Association of Private Sector Colleges and Universities, is challenging that rule, among others.

APSCU argued that the default rates announced on Monday were misleading, partially because of steps taken by the schools to address problems in recent months, calling the data “looking in the rear view mirror.”

“We believe that the default rates will go down when the economy improves and the unemployment rate drops,” (BRILLIANT!) the group said in a statement.

http://www.reuters.com/article/2011/09/12/education-forprofit-idUSS1E78B0UY20110912

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Via: Raw Reply June 8, 2011

Acting on orders from the U.S. Department of Education, a S.W.A.T. team broke into a California home Tuesday at 6 a.m. and roughed up a man — because of his estranged wife’s defaulted student loans, ABC News10 reported. She wasn’t there.

Yet, Kenneth Wright of the city of Stockton was grabbed by the neck by handcuffed before he and his three young children were put in a police car as the officers searched his house, he told ABC News10. He said he was in his underwear the whole time.

“They busted down my door for this. It wasn’t even me,” Wright told the local news station. “All I want is an apology for me and my kids and for them to get me a new door.”

Local police were reportedly not involved in the incident.

http://www.rawstory.com/rawreplay/2011/06/swat-team-busts-into-house-over-student-loan-default/

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personal thought:

I see NO SIGN the economy will improve, and unemployment rates will drop, in 2011 OR 2012.

IF things don’t get better, I can imagine some very angry young people, perhaps not as angry as those in the UK; but perhaps, even angrier.

~

photo: Seattle, November 30, 1999

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September 13, 2011 - Posted by | Uncategorized | , , , , ,

1 Comment »

  1. What a tragedy. In a new world of 9% unemployment those Certificates are becoming nothing more then expensive pieces of paper. This is a disaster for the country and its’ youth.

    Comment by Vadim | September 13, 2011 | Reply


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