Saturday, September 12, 2015
Which Colleges In US Have The Most Indebted Students?
Student debt is over $1 trillion in the US. A Brookings study found that for-profit private colleges have generated a lion's share of student debt burden. In 2000 only 1 in 10 for profit colleges were among the top 25 colleges in student debt. By 2014, 13 of the colleges on the top 25 list were for-profit colleges. The University of Phoenix is at the top of the list with $35 billion of total student debt. The rapid growth of the for-profit college industry has been extensively funded by the availability of federal student loans. The for-profit colleges also generate the largest number of defaults on federal student loans. That is because they have very low graduation rates and their graduates have not been able to get high paying jobs upon graduation. Although some graduates from these institutions may be better off upon graduation, there is a real sense in which it is a predatory system that has been enabled by government programs. It has also been fueled by the rising costs of attending publically funded community colleges and universities. The rising cost of public higher education has been driven by reductions in state funding for higher education.