Posted on 09/13/2010 12:27:21 PM PDT by SeekAndFind
The student loan default rate continued to rise in fiscal year 2008, the latest period for which data is available, with default rates for students at for-profit colleges — already the highest — rising the fastest.
Education Secretary Arne Duncan announced Monday morning that the overall student loan default rate for fiscal year 2008 was 7 percent, up from 6.7 percent the previous year.
The rates increased to 6 percent from 5.9 percent at public institutions, to 4 percent from 3.7 percent for private institutions and to 11.6 percent from 11 percent for for-profit institutions.
The default rates represent a snapshot in time, including only those borrowers whose first loan repayments came due from Oct. 1, 2007, to Sept. 30, 2008, and who defaulted before Sept. 30, 2009. Those who defaulted later were not included in the data; over time, default rates increase substantially.
During the period in question, almost 3.4 million borrowers entered repayment, and more than 238,000 defaulted on their loans.
“This data confirms what we already know: that many students are struggling to pay back their student loans during very difficult economic times,” Mr. Duncan said, in a statement Monday. “The data also tells us that students attending for-profit schools are the most likely to default. While for-profit schools have profited and prospered thanks to federal dollars, some of their students have not. Far too many for-profit schools are saddling students with debt they cannot afford in exchange for degrees and certificates they cannot use.”
In award year 2008-09, students at for-profit schools represented 26 percent of the borrowers — but 43 percent of the defaulters. The median federal student loan debt for students earning associate degrees at for-profit institutions was $14,000.
Most community college students do not take out student loans.
(Excerpt) Read more at nytimes.com ...
According to the news, Obama is proposing a law designed to protect students from debt they cannot repay by REQUIRING for-profit institutions to prepare students for “gainful employment” or risk losing access to federal student aid.
What does that even mean?
colleges have been sanctioned to collect extorsion fees since I was college age
I was talking to my nephew who graduated last May and is getting first hand experience with the crappy job market. He said that among his friends there is the feeling that with all the mortgage, car payment, and student loan defaults Obama is going to be forced to wipe every ones credit scores. So a lot of his friends are just defaulting figuring that when Obama Zero’s the accounts they will be smiling all the way to the bank. He of course was smart enough to realize that if they don’t clear the scores anyone who defaulted is going to be screwed.
Also on the top of the hour news proganda on the radio Obamas voice came on and said that the Federal Gov. will be giving lots of funding to “Historically Black Colleges” Not sure what else he said as I screamed out a bunch of not so flattering names for Obama and truned off the radio
Can you or anybody tell me what a “for-profit” college is ?
Aren’t all private colleges for profit ?
RE: “Historically Black Colleges”
According to Wikipedia : Historically black colleges and universities (HBCUs) are institutions of higher education in the United States that were established before 1964 with the intention of serving the black community.
There are 105 historically black colleges and universities (HBCU) in the United States today, including public and private, two-year and four-year institutions, medical schools and community colleges.
All are or were in the former slave states and territories of the U.S. except for Central State University (Ohio), Cheyney University of Pennsylvania, Lewis College of Business (Detroit, Michigan), Lincoln University (Pennsylvania), Wilberforce University (Ohio), and now-defunct Western University (Kansas).
RE: “Historically Black Colleges”
According to Wikipedia : Historically black colleges and universities (HBCUs) are institutions of higher education in the United States that were established before 1964 with the intention of serving the black community.
There are 105 historically black colleges and universities (HBCU) in the United States today, including public and private, two-year and four-year institutions, medical schools and community colleges.
All are or were in the former slave states and territories of the U.S. except for Central State University (Ohio), Cheyney University of Pennsylvania, Lewis College of Business (Detroit, Michigan), Lincoln University (Pennsylvania), Wilberforce University (Ohio), and now-defunct Western University (Kansas).
RE: “Historically Black Colleges”
According to Wikipedia : Historically black colleges and universities (HBCUs) are institutions of higher education in the United States that were established before 1964 with the intention of serving the black community.
There are 105 historically black colleges and universities (HBCU) in the United States today, including public and private, two-year and four-year institutions, medical schools and community colleges.
All are or were in the former slave states and territories of the U.S. except for Central State University (Ohio), Cheyney University of Pennsylvania, Lewis College of Business (Detroit, Michigan), Lincoln University (Pennsylvania), Wilberforce University (Ohio), and now-defunct Western University (Kansas).
To all those unemployed defaulters who majored in Lesbian Womens Studies. What were you thinking?!!!
“”Can you or anybody tell me what a “for-profit” college is ?
Aren’t all private colleges for profit ?””
Pretty much. Univ. of Phoenix. National University etc. as opposed to state schools or catholic schools which i believe are non-profit status too.
there’s no such thing as default on a student loan, you can’t give it back. You just can’t make payments and the interest increased until you just don’t care.
This hurts Diane Feinstein’s husband, Ron Bloom, who owns ITT Tech, so it makes me smile...until we bail him out with tax dollars.
Also, many of these students with horrendous loans have parents who can afford to pay all or part of the college expenses but don't want to change their big spending lifestyle.(three kids - five or more cars in the driveway, very expensive vacations, party-party-party, etc.)
This is just another approach to put private education out of business...this is such a circus...
RE: This is just another approach to put private education out of business
Actually I see a slow but sure TAKEOVER of private education. If it can happen to GM, Chrysler and Citibank, why not to colleges ?
Question: Do they consider the Ivy League schools as for-profit colleges or not ?
No, most private colleges are non-profit institutions. A for-profit institute is one like DeVry Electronics or a lot of the "Trade" Schools that claim to provide some kind of certificate or degree that will qualify people for various jobs. Some of these for-profit institutions are little more than a sham that issues worthless certificates while taking your federally subsidized loan for their artificially inflated tuition and fees.
The vast majority of private colleges in the US are non-profit, including the Ivy League schools.
This provision, if it passes, will apply to all colleges and universities, but it’s aimed at for-profits, who have been proven to (in general) have very high tuition, gain up to 90% of their tuitions dollars from federal financial aid, and then have students with the highest default rates. It will eliminate those schools who are the worst offenders from participating in the federal aid programs. The for-profits are spending millions to stop this.
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