Wednesday, December 16, 2009

Real Student Default Rates Much Higher Than Previously Known

Of the billions that taxpayers spent to help students attend for-profit colleges and universities in 2007, half will never be repaid, according to Department of Education projections (PDF) released Tuesday.

And the department expects that over 40 percent of the loans granted from 2003 to 2006 to students at for-profit institutions will ultimately be written off.