College Students Defaulting At Record Rate
Career College Central Summary:
Student loan defaults have risen for the fifth straight year, as students from traditional non-profit universities have an increasingly difficult time paying off their college debt.
Numbers released by the Department of Education Friday show that of the 4.1 million borrowers who began making payments in late 2009 and early 2010, 9.1% defaulted within two years, up from 8.8% the year before.
Experts credited the combination of skyrocketing student debt, the poor economy and a lack of borrower education for the increase.
For the first time in four years, the two-year for-profit school default rate dropped from the previous year, to 12.9% from 15%.
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