According to DOE Loan-Default Rate at For-Profit Colleges Would Double Under New Formula

Posted By: Admin | Posted In: Trending News |
February 4, 2011

US Department of EducationToday the Department of Education released data  showing that while the official loan-default rate for students of for-profit colleges who entered repayment in 2008 was 11.6 percent, the rate would actually be more than double that, or 25 percent, under a stricter measurement standard that begins to take effect next year. Under the new rules, colleges will have to track the borrowers for three years once they begin repaying their student loans, instead of the two-year window that has been in place previously. Those Colleges whose default rates are too high over several years may lose eligibility to participate in the federal student-aid programs, thus go away… The industry association has challenged the report. Link to article:]]>