And the data suggests that many popular perceptions of student debt are incorrect. The huge run-up in loans and the subsequent spike in defaults have not been driven by $100,000 debts incurred by students at expensive private colleges like N.Y.U.

    They are driven by $8,000 loans at for-profit colleges and, to a lesser extent, community colleges. Borrowing for both of these has become far more common in recent years.Mr. Looney and Mr. Yannelis estimate that 75 percent of the increase in default between 2004 and 2011 can be explained by the surge in the number of borrowers at those institutions.



steve:

The whole "for-profit University" thing is such a frustrating and rage-inducing mess. I can hardly believe we allow it to happen. I know far too many people who are throwing their life away (in the form of debt bondage) to places like this. It's so infuriating.

I wish I had answers... for now I just have disillusionment and frustration.


posted by mk: 1167 days ago