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Student loan default rates are on the rise - from 7% to 8.8% - with the sharpest increase coming...

Student loan default rates are on the rise - from 7% to 8.8% - with the sharpest increase coming from the troubled for-profit sector, where the rate has jumped to 15% from 11.6%. The government has promised to crack down - banning schools from taking students with federal loans if they don't meet certain criteria.
Comments (6)
  • buyitcheap
    , contributor
    Comments (1866) | Send Message
     
    Are viable majors going to be part of the criteria? Do we need another sociology or philosophy major? How about more engineering?
    12 Sep 2011, 03:29 PM Reply Like
  • linenoise
    , contributor
    Comments (215) | Send Message
     
    Good luck bleeding the 150k you're owed out of that philosophy major. Who underwrote that loan? Someone who thought the laws would ensure their repayment, not someone who thought they were making a good investment.
    12 Sep 2011, 03:34 PM Reply Like
  • Duude
    , contributor
    Comments (3368) | Send Message
     
    Let us not forget for-profit schools ought to have higher default rates simply because they're open to anyone willing to take out student loans and accept a large percentage of students over the Internet. There aren't any entrance exams or qualification criteria to get in. Additionally, It could be reasoned students that attend school at a physical location may be somewhat more invested in the educational opportunity.
    12 Sep 2011, 03:45 PM Reply Like
  • buyitcheap
    , contributor
    Comments (1866) | Send Message
     
    The only "plus" about the for profit schools is that they seem to be focusing on useful majors and trades, though I could easily be wrong. And I'm seeing more of the not for profits are admitting grad students without GMATs and others in their grad schools and using adjuncts to teach the course (you want to talk 98% gross margin on individual courses?) oh, yeah. That's why the for profits are getting into this racket.
    12 Sep 2011, 04:22 PM Reply Like
  • serndipity
    , contributor
    Comments (193) | Send Message
     
    Two degrees from schools, ranked in the top 100 US Universities (US World Report) and no debt.

     

    B.S.E.E. from Northeastern University on their co-op work study program .......takes 5 years, year round, but graduated with a 4 year engineering degree, 2 years of related experience and no debt ($ earned on co-op paid everything).

     

    Later, M.B.A. from Boston University.......took 4 years nights (vs. 2 years days), but same professors, program and all paid by employer tuition reimbursement.
    12 Sep 2011, 06:03 PM Reply Like
  • buyitcheap
    , contributor
    Comments (1866) | Send Message
     
    For anyone who reads serndipity's comments - Northeastern is a SOLID engineering school, I know quite a few grads from there who were as diligent in graduating debt free as well. Nice one Sern!
    13 Sep 2011, 08:57 AM Reply Like
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