Posted: Sep 13, 2010 1:45 PM by Bea Karnes, News First 5
Updated: Sep 13, 2010 1:48 PM
The number of people defaulting on their federal student loans is climbing, and those who attend for-profit schools remain the most likely group to default, according to new government data released Monday.
The U.S. Department of Education says numbers from fiscal year 2008 show 7 percent of borrowers of federal student loans default within two years of beginning repayment, up from 6.7 percent the previous year.
The default rate for students at for-profit schools rose from 11 percent to 11.6 percent. For-profit colleges are fighting proposed Education Department regulations that would cut off federal aid to for-profit college programs if too many of their students default on loans or don't earn enough after graduation to repay them.