50 Colleges with the Most Difficulties Repaying Student Loans
Debt incurred by students at colleges and universities
According to the College Board, the amount of debt that parents take on to support their children’s college expenditures has increased by 16 percent in the last ten years and by more than 750 percent in the last three decades. These loans can be a godsend for higher education access, allowing families who otherwise couldn’t afford college tuition to send their children to school. However, they can also burden borrowers with debt that puts a strain on their budget and puts them in considerable financial distress.
A brand-new This website’s study of recently published federal loan data reveals how many families are having trouble repaying their debts, as well as the schools where parents are having the most difficulty. The data also demonstrates how much of a financial burden these loans place on the families that can least afford them, as well as how little they pay off in many cases, given that the most troublesome institutions have very poor graduation rates.
In other words, many of these institutions will fail if the objective of borrowing is to pay for your child’s education.
Over the two academic years from 2017 to 2019, one in ten borrowers under the federal government’s Parent PLUS loan program defaulted or were substantially late with payments, according to this website’s data. The rates topped 20% at more than 150 of the almost 1,000 colleges and universities for which this website has data. And at dozens of institutions, the default and delinquency rate was at least 30 to 40%, which would have resulted in a loss of federal support if the loans had been made to undergraduates rather than parents.
What colleges are the most likely to struggle for parent borrowers?
For-profit colleges and universities dominate the list, such as Blue Cliff College-Metairie near New Orleans, Louisiana, and the Dorsey School of Business-Woodhaven outside Detroit, Michigan, where default and delinquency rates reached 39 and 36 percent, respectively, and more than 85 percent of parent borrowers came from low-income families. In total, 62 percent of the 50 schools with the highest delinquency and default rates. This is a condensed version of the information.