New Data Confirm Troubling Student Loan Default Problems
For-Profit Colleges Still Have Highest Rate

September 30, 2013
The Institute for College Access & Success
More than 600,000 federal student loan borrowers who entered repayment in 2010 defaulted on their loans by 2012, new federal data show. The largest share of these students – 46 percent –attended for-profit colleges, which enrolled just 13 percent of students nationally. For-profit colleges also had a much higher average default rate than other types of schools: 21.8 percent, compared to 13.0 percent at public and 8.2 percent at nonprofit colleges. Across all colleges, 14.7 percent of borrowers defaulted within three years of entering repayment.