Student Loan Default Rates At For-Profit Schools Keep Climbing

The latest figures from the Department of Education “show rising default rates on student loans with the sharpest increase among students at for-profit trade schools and colleges.” The two-year default rate for students who attended for-profit schools and began paying back their loans in fiscal year 2009 was 15 percent, up from 11.6 percent for students who began paying in 2008. Overall, two-year student loan default rates jumped from seven percent to 8.8. percent. As we’ve shown, for-profit schools make up to 90 percent of their revenue from the federal government, but leave their students buried in debt and with bleak job prospects.