A new study
finds that students at 514 colleges and universities are more likely to default
on their student loans than graduate. The non-profit Education Sector conducted the study; the
group partnered with USA Today
for a subsequent joint analysis of federal data.
"These colleges should set off a red flag in the
minds of prospective student borrowers--and their parents," said Education
Sector Director Andrew Gillen. "Many students at these colleges will no
doubt take out loans, graduate and get good jobs. But the high default rates
and lower graduation rates suggest that many will not."
The report comes as the subsidized Stafford loan interest
rates reverted back to near pre-recession levels of 6.8%, a rate
double their current level. The higher rate will only apply to new student
loans, not existing ones.
“Given the importance of defaults, and the recent jump in
their numbers, it makes sense for the government to provide more detailed
information on defaults, not just as an accountability lever but as a basic
consumer right,” says Gillen….This Appeared Here…..
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