A Look At Which Students Are Most Likely To Default On Their Student Debt

Since the early 2000's the amount of student debt outstanding has grown exponentially, along with annual tuitions, and now stands at nearly $1.5 trillion. Moreover, and not terribly surprisingly, defaults on that growing mountain of student debt have also surged as graduating students quickly discover that they just dropped $200,000 on a near-zero ROIC investment.

But while a lot of attention is given to the growing default rates on this particular future economic disaster in the making, less time is spent trying to understand which students are most susceptible to default. That said, the following series of charts from the Federal Reserve Bank of New York help to shed some light on that particular topic.

To our complete 'shock', students attending the nation's predatory for-profit colleges, with their aggressive lending programs, are almost twice as likely to default on their student loans than those attending non-profit schools.

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