Default Rates Sky-High at For-Profit Colleges

Comments (3)

  1. Alan says:

    Funny that the Center for American Progress is funded by DeVry University (and Walmart, and Goldman Sachs, and Wells Fargo, and Citigroup, and B of A, and Northrop Grumman, and The Blackstone Group).

    Funny, too, that CAP is AGAINST returning standard bankruptcy protections to student loans. Looks like the investment community has corrupted them, as evidenced clearly by this article.


    Samantha Solomon

    Samantha Solomon Reply:

    Hi Alan, I think I understand what you are suggesting, but could you be more specific?


  2. Charles Riser JR says:

    This article is not only misleading but misses one important point:

    The ACTUAL loan default rates for Community Colleges (even public ones) is now higher than loan defaults for private, for profit, institutions.

    In fact, when a student drops from a community college, over 70% of the money can never be recovered because over 70% of community college costs are subsidized by local and federal tax payers.

    When a student at a for-profit college drops, ALL the money spent on their education can be recovered because the federal government has made declaring bankruptcy protection on federal student loans to be off the books. Meaning you can never discharge them. The government’s own data says that over 80% of all defaults are ultimately collected on and recovered.

    So in the end, the community colleges are costing the tax payer MORE money than for profits do.

    Charles R Riser JR


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