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California Association of Private Postsecondary Schools

APSCU Statement On Department Of Education Loan Default Rates

09/28/2012

APSCU - September 28, 2012

Washington, D.C. – Former Congressman Steve Gunderson, the president and chief executive officer of the Association of Private Sector Colleges and Universities (APSCU) today released the following statement in response to the Department of Education's release of the loan default rates:

“Student loan defaults are a serious problem for everyone – the nation, the higher education community, and especially the students.  Our schools offer students a means to improve their financial situation through access to postsecondary education.  Eighty-six percent of the students who attend our schools receive some form of need-based student aid.  Single parents, working adults with dependents and first generation college students are the most in demand of these loans in order to get the education and skills required to compete in the workforce and continue to provide for their families.

“We all must do more.  We ask the Department of Education to improve its management of loan collection programs and to eliminate the high penalties.  We ask the Congress to give schools the authority to limit loans to the direct cost of education as a way of reducing total student debt.  For our part, member schools will continue to provide their students with financial literacy and debt repayment counseling.  In this vein, this November APSCU will host the annual Default Prevention Seminar for our member schools, sharing the most innovative and effective methods of helping students repay their loans.

“It is only by the entire higher education community working together with elected officials and policy makers that we will help millions of Americans effectively manage their student loan debt.”