by Nick DeSantis
Chronicle of Higher Education
More than one out of eight student-loan borrowers who entered repayment from October 1, 2008, to September 30, 2009, defaulted within three years, the U.S. Education Department announced on Friday as part of its first release of official data on cohort default rates for federal student loans measured over three years.
The new figure on overall default rates, 13.4 percent, was released as the department switches from measuring the rates over three years instead of two. For-profit institutions had the highest average three-year default rates, at 22.7 percent, which was more than double the 11-percent rate among public institutions. Private, nonprofit institutions had an average three-year default rate of 7.5 percent.
The department also announced that two institutions—the Centro de Estudios Multidisciplinarios, in San Juan, Puerto Rico, and Tidewater Tech, in Norfolk, Va.—faced possible sanctions for having two-year default rates of 25 percent or more. Unless they bring successful appeals, those institutions stand to lose their eligibility to participate in federal student-aid programs.
No institutions will face sanctions based on the new three-year rates until three years of data have been collected, though institutions with rates of 30 percent or higher must create a default-prevention task force and submit a management plan to the department.
The department said 218 institutions had three-year default rates above 30 percent, and 37 institutions had three-year default rates higher than 40 percent.
For more, see this article, with data, from The Chronicle.
More than one out of eight student-loan borrowers who entered repayment from October 1, 2008, to September 30, 2009, defaulted within three years, the U.S. Education Department announced on Friday as part of its first release of official data on cohort default rates for federal student loans measured over three years.
The new figure on overall default rates, 13.4 percent, was released as the department switches from measuring the rates over three years instead of two. For-profit institutions had the highest average three-year default rates, at 22.7 percent, which was more than double the 11-percent rate among public institutions. Private, nonprofit institutions had an average three-year default rate of 7.5 percent.The department also announced that two institutions—the Centro de Estudios Multidisciplinarios, in San Juan, Puerto Rico, and Tidewater Tech, in Norfolk, Va.—faced possible sanctions for having two-year default rates of 25 percent or more. Unless they bring successful appeals, those institutions stand to lose their eligibility to participate in federal student-aid programs.
No institutions will face sanctions based on the new three-year rates until three years of data have been collected, though institutions with rates of 30 percent or higher must create a default-prevention task force and submit a management plan to the department.
The department said 218 institutions had three-year default rates above 30 percent, and 37 institutions had three-year default rates higher than 40 percent.
For more, see this article, with data, from The Chronicle.
4 comments:
Sent all these students back to college to get degrees! The problem was not enough students with degrees it is and has been NO JOBS! Where did they think these students were going to get the money to pay back their debt? Oh of course, just print more money.
It was a political move to harness the young voters with the promise of lower loans. They got the votes and like all our debt, let the youth of our country figure out how to pay back all our government now owes.
Jobs are and always will be the solution to our problem.
Lets get AMERICAN GOODS back into the competitive market.
The student loan defaults, like the foreclosure rates of homes, exists because loans were made that should not have been made. Student loans are given to students who, out of high school, can't read or write and are destined to default. The only thing that keeps the rates from going higher, is that the taxpayer takes the hit for "free" education grants to unqualified college students. At the same time, many who deserve assistance can't get it because they are linked, but not necessarily supported, by parents who have an income. Therefore, unqualified students get free assistance while deserving and capable students are forced to seek loans....and when they graduate there are no jobs.
Therefore, unqualified students get free assistance while deserving and capable students are forced to seek loans....and when they graduate there are no jobs.
This is true. I did two years at UTB and it was a joke. The average grade in my freshman year math class was 45. The tests were nearly identical to the homework problems. I was frequently asked by the other students to let them cheat off my homework assignment because they hadn't done those either. Sometimes only five or less of us in the entire class would receive a passing grade on a test or quiz, and when the professor asked why no one came to him for help when they clearly were struggling, the rest of the class was just silent or giggled.
To the kids who get in free, it's like another lazy day they wasted in BISD high school.
Look around, you see millions of dollars being thrown away on kids who cheat in the 15 minutes before class by copying down their friend's answers to turn in, who can't be bothered to open their textbook and read one chapter the night before. The ones who whine and complain about having to do 10 homework questions.
I also feel for the students who are willing to put in the work but don't get the free breaks these public school kids get. They get free babysitting for being poor and in college, so its easier to sit in class, make a 30 on the test and let the taxpayers babysit their brats for a few months.
Free assistance should be based on grades. Kids willing to put in the hours of study should get reduced or free tuition if they keep a 4.0 and not be held back from school just because their families make too much for them to qualify for aid
While all the C, D and F student flunkies from BISD sitting in class, cheating on their homework, with free tuition and free books are sucking up billions of government money. they should be dropped from aid to be given to those willing to do the work
Post a Comment