CAPPS - Avocacy and Communication Professional Development

California Association of Private Postsecondary Schools

New Report on Measuring Loan Defaults

07/03/2013

INSIDE HIGHER ED.  JULY 3, 2013. A report issued Tuesday by Education Sector, a Washington, D.C. think tank, examines the federal government's three-year cohort default rate for federal student loans as well as alternative ways to measure how many students fail to repay their debt. The report, "In Debt and In the Dark," argues that current publicly available information on loan defaults is incomplete and doesn't represent students' total risk of default. The author, Andrew Gillen, research director of Education Sector, calls for combining default rates with graduation rates — saying that graduation rates that exceed default rates, found at 514 colleges, the majority of which are community colleges, are a "red flag" for prospective students.