College completion is the best default aversion

Career College Central Summary:

According to a New America Foundation analysis of the Department of Education's "Beginning Postsecondary Students" survey, of all students who began school in 2003-04 and were in default on their student loans six years later, the overwhelming majority — more than 60 percent — were students who left school with no degree.
Of all the dropouts in the survey — defaulting or not — about one in four were unemployed as of 2009.
That's twice the unemployment rate of students who obtained a bachelor's degree. Of course, not all college graduates avoid default.
But of completers who defaulted on their loans, nearly 88 percent earned just a certificate. That's nearly one in four of all those who obtained only a certificate within six years of starting school.
People who earned a bachelor's or associate degree basically do not default, with just 3.5 percent ending up in this status.
Those challenges are undoubtedly driven, at least in part, by the fact that about one in three of all students who earned a certificate or degree and defaulted on their loans was unemployed at the end of the survey.

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