Student Defaults Rising

The default rate for all federal student loans rose to 13.8% from 11.8% for students beginning repayment in FY ‘08 compared with ‘07 according to the DOE. For public schools, the default rate is 10.8% while it is only 7.6% for private schools. For-profit colleges have the highest default rate at a whopping 25%! Can you imagine what the statistics for Fiscal ’09,’10 or ’11 are going to look like?