Default Rate Of Repayment On For-Profit College Loans Hits 25 Percent

About one-quarter of students who borrowed federal loans to attend for-profit colleges defaulted on their loan this year, up from an estimated 21 percent in December 2009. According to an Education Department report to be published Friday, most students defaulted within three years of starting repayment. As The Washington Post reports, the default rate for public colleges has risen about 1 percent, to an 11 percent default rate; the rate for private nonprofit colleges is about 8 percent, up from 7 percent in the previous report. The Obama is considering new regulations to help ensure students in for-profit colleges find “gainful employment,” but many for-profit schooling companies have vigorously opposed the idea.