Student loan default rates increase -- especially at for-profit schools
The national student loan default rate is rising, according to new statistics released today, and students who obtain loans to attend for-profit schools are more likely to default than those in nonprofit institutions. Education Secretary Arne Duncan announced today that the national “cohort default rate” for fiscal year 2008, the latest available data, is 7 percent, up from 6.7 percent from fiscal year 2007. Here are the breakdowns: Public institutions -- Increased from 5.9 to 6 percent Private nonprofit institutions -- Increased from 3.7 to 4 percent For-profit institutions -- Increased from 11 to 11.6 percent for for-profit schools.