Data released by the Department of Education today show that while the official loan-default rate for students of for-profit colleges who entered repayment in 2008 was 11.6 percent, the rate would be more than double that, or 25 percent, under a stricter measurement standard that begins to take effect next year… Congress changed the measurement period in 2008 in response to concerns that the two-year rate didn’t adequately capture the depth of the loan-default problem, because colleges and loan companies could use "default management" techniques to push many borrowers with repayment problems beyond the two-year window… In the aggregate, rates for public and private nonprofit colleges also rose, but not by as much.

Read full article [here].
by Goldie Blumenstyk, The Chronicle of Higher Education.

Posted: February 4th, 2011, by: admin. Categories: . Awaiting Comments.