| Chrkeller said: Interesting graph below. Almost like worthless degrees from for profit "universities" is in fact the problem. Hmm....
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For-Profit schools make up a tiny fraction of total college enrollment, so even if they have a higher rate of default, they still make up a smaller fraction of total loan defaults (See first figure). That isn't to say that for-profit colleges don't present problems, but to say they are the problem, when they make up roughly 1/20th of college enrollment, should be clearly off the mark. Further, this data may be impacted by factors beyond quality of education, such as the socioeconomic status of the students entering. Those in families with lower income brackets are more likely to enroll in Private, For-Profit schools and Public 2-year programs (which have high default rates) and less likely to enroll in Private, Non-Profit schools or Public 4-year programs (which have lower default rates) (See second figure).
EDIT: Also, as a quick aside, a lot of for-profit schools are trade schools/vocational schools. While there are multiple paths into those fields, it is kind of interesting that some of the solutions you posed earlier are part of the problem you are talking about now.
Last edited by sundin13 - on 14 April 2024
