AG needs help watching for-profit colleges on August 27, 2011.
Student loan defaults are a real concern, wherever they occur. Postsecondary institutions of all types need to do a better job of loan counseling, disclosure of information that reflects on the likelihood of students to repay, and preparation of students to budget wisely in future years. The federal government needs to consider steps that would limit borrowing to true education expenses and end the practice of student loans becoming an extension of consumer debt. All that being said, the truth about these defaults is that they are most likely to occur among the economically disadvantaged. Students attending private sector colleges and universities (sometimes called for-profit colleges), community colleges, or historically black or Hispanic colleges and universities, have substantially similar default rates because they have substantially similar working class backgrounds. So why not see the problem for what it is? And understand that those who are most at risk by virtue of reduced financial circumstances are also those most at risk for student loan default, regardless of where they go to school.
Interim President and CEO
Association of Private Sector Colleges and Universities