March 13, 2011
Many For-Profits Are 'Managing' Defaults to Mask Problems, Analysis Indicates
3-year default rates on student loans are 5 times as high as 2-year rates at some colleges
By Goldie Blumenstyk and Alex Richards
It is no surprise that student-loan default rates go up the longer they're tracked: Give borrowers more time, and more of them will default.
But a Chronicle analysis has found that at hundreds of colleges, most of them for-profit, the three-year default rate is inordinately greater than the two-year rate, giving credence to concerns that certain colleges are aggressively using "default management" tools to mask problematic rates of default.Read more: http://chronicle.com/article/Many-For-Profits-Are/126689/?sid=at&utm_source=at&utm_medium=en
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