NAICU - Government Vastly Undercounts Defaults

Even though the 2012 NAICU Annual Meeting is history, you can continue to benefit and learn from the many presentations and speeches that were offered, and are now available on line.

New College Affordability Measures

Initiatives being launched in 2012-13 to help keep students' and families' out-of-pocket costs as low as possible. Tuition cuts and freezes, three-year degree programs, and more. Complete list.

NAICU Statement on President Obama's Higher Ed Proposals

NAICU President David Warren commends the president's commitment to student assistance, and calls for avoiding unintended consequences for students. More

Net Tuition Price Falls 4.1% at Private Colleges

Inflation-adjusted net tuition and fees at private colleges actually dropped 4.1 percent in the last five years, according to a recent College Board report. More

News Search of the Week

Here's what the media are saying about:

Higher Education Reform/Innovation

. . . or visit our full search-by-topic list to browse news and commentary on any of 80+ higher ed topics.

Banner images provided by Bryant University.

Home

News Room

Government Vastly Undercounts Defaults

Chronicle of Higher Education

July 12, 2010

According to unpublished data obtained by The Chronicle, one in every five government loans that entered repayment in 1995 has gone into default. The default rate is higher for loans made to students from two-year colleges, and higher still, reaching 40 percent, for those who attended for-profit institutions. The data also show that the government's official "cohort-default rate," which measures the percentage of borrowers who default in the first two years of repayment and is used to penalize colleges with high rates, downplays the long-term cost of defaults, capturing only a sliver of the loans that eventually lapse.

Related Material

Read the full article...