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According to the information presented by the US Department of Education, 25% of students attending for-profit schools have defaulted on the taken student loans. In fact, it turned out that the level of default on student loans is higher for students attending for-profit, private university. And only 11% of students attending public school have defaulted on their loans.

default rate on federal student loans

Following the Fed's report, default rates on credit cards decline due to the tight requirements provided by the issuers for getting credit approved.

Though, the declining rate of credit card debt has its dark side. TransUnion performed data proving that people just started to blow off their mortgages and pay the credit card bills instead. This happens due to the fact that consumers don't want to lose the access to their credit cards as it is important for people on the financial brink. Moreover, some issuers who write off or sell balances which have defaulted in order to reduce credit card debt.

Universities that are private and for-profit school are not all exactly on the level, which is why scholars should be cautious if considering one. College often has to be funded with some unsecured loans of some sort. Private for-profit schools have higher student loan default rates and clash with the authorities regularly. Students should do their homework before going to, though many for-profit schools are perfectly fine.

Default rates on personal loans in for-profit colleges are really high. Federal and state authorities take these institutions under control.

Debt on student loans increases constantly. It has even outpaced credit card debt. Default rate grow, especially in for-profit colleges.

The main problem concerning student loans consists not only in the fact that education is more expensive than ever, but also the factor of recession plays an important role as it's really the hardest time for college graduates who find it really difficult to get decent employment and earn enough for their loans repayment.