• Business School
    • Free MBA Admissions Consultation
    • MBA Admissions Services
    • School-Specific MBA Essay Tips
    • Executive MBA Essay Tips
    • MBA Admissions Calendar
    • Free Guides
    • Video Tips
    • Podcast
    • Selectivity Index
    • EMBA: The Ultimate Guide for Applicants
  • Medical School
    • Free Med School Admissions Consultation
    • Med School Admissions Services
    • Med School Admissions 101
    • Secondary Essay Tips (by School)
    • Student Interviews
    • Free Guides
    • Video Tips
    • Podcast
    • Selectivity Index
  • Law School
    • Free Law School Admissions Consultation
    • Law School Admissions Services
    • Law School Admissions 101
    • Selectivity Index
    • Free Guides
    • Podcast
    • Video Tips
  • Graduate School
    • Free Grad School Admissions Consultation
    • Grad School Admissions Services
    • Grad School Admissions 101
    • Free Guides
    • Video Tips
    • Podcast
  • College
    • Free College Admissions Consultation
    • College Admissions Services
    • Free Guides
    • Supplemental Essay Tips
    • Video Tips
    • Podcast
Accepted

Speak with an Accepted admissions expert for FREE!

Blog HomePodcastContact Us

Accepted Admissions Blog

Everything you need to know to get Accepted

September 29, 2015

Reading Time: < 1 minutes

Facing The Student Loan Crisis

Download your free guide to preparing for college in high school!
Why is student loan delinquency on the rise?

According to a new study, “A Crisis in Student Loans? How Changes in the Characteristics of Borrowers and the Institutions they Attend Contributed to Rising Loan Defaults,” student loan delinquency is on the rise, largely driven by a high rate of default among borrowers who attend for-profit institutions. The study, by Adam Looney of the U.S. Department of the Treasury and Stanford’s Constantine Yannelis, analyzes Department of Education data on federal student borrowing and earnings data from tax records. Here are a few highlights:

• Default rates doubled from 2000 to 2011.

• According to the study, the “student loan crisis” is largely due to an increase of “non-traditional” borrowers. These are borrowers attending for-profit or non-selective institutions and who have “relatively weak educational outcomes and difficulty finding jobs after starting to repay their loans.”

• “Traditional” borrowers refers to students at four-year colleges who earn good salaries after college and pay back their loans.

• Federal student loan balances have quadrupled over the last 12 years, exceeding $1.1 trillion. (This is greater than every household debt other than mortgages.)

• In 2011, borrowers at for-profit and two-year institutions accounted for 70% of student loan defaults. In 2000, only one of the top 25 schools with the most federal debt was a for-profit school; in 2014, 13 were.

• More than one in five borrowers who left their for-profit institution in 2011 was not employed in 2011. For community college borrowers, that number was nearly one in six.

The New York Times article, “New Data Gives Clearer Picture of Student Debt” provides more insight into this subject.

The Guide to Preparing for College in High School - free guide

Accepted: The Premier Admissions Cosultancy
Related Resources:

• Start Thinking About College Financing
• Free College Admissions Guides
• How To Choose A College Admissions Consultant

Article by Accepted / College Admissions / Financial Aid

Get Accepted!

Sign up for a free consultation today!

Which program are you applying to?

Most Popular Blog Posts

1. 7 Simple Steps to Writing an Excellent Diversity Essay

2. 4 Ways to Show How You’ll Contribute in the Future

3. How to Write About Your Research Interests

4. Tips for Answering the Yale University Supplemental Essays and Short Answer Questions [2022-2023]

5. When Will Medical Schools Give You an Answer?

6. Sample Essays from Admitted HBS Students

7. Tips for Answering the University of Pennsylvania Supplemental Essay Prompts [2022-2023]

8. Top STEM MBA Programs: A Comprehensive List and Overview of STEM-OPT Eligible B-Schools

Sample Essays

MBA Personal Statement Examples

Medical School Personal Statement Examples

Graduate School Personal Statement Examples

Law School Personal Statement Examples

College Application Essay Examples

 

This Site is Featured on GMATClub

Home Page Services and Prices MBA Med School Law School Grad School College

About Us Press Room Contact Us Podcast Accepted Blog
Privacy Policy Website Terms of Use Disclaimer Client Terms of Service

Accepted 1171 S. Robertson Blvd. #140 Los Angeles CA 90035 +1 (310) 815-9553
© 2022 Accepted

BBB A+ RatingStamp of AIGAC Excellence

Copyright © 2023 · Education Pro Theme on Genesis Framework · WordPress · Log in