AP has cranked the 3 year default rate on government student loans and discovered a 21.1% default on for profit schools vs. a whopping 12% 3 year default rate from government student loans overall.
According to this Wikipedia article, 9% of all college students attend for profit schools. There is also an issue of transferring credits to a non-profit educational system, although some for profits have been accredited. A list of for profit schools is here.
New data shows more than 300 colleges — more than 85 percent of them for-profit schools — had three-year default rates higher than 30 percent.
There are new rules, kicking in 2012, where higher education institutions with a 3 year default rate of 30% or higher will be cut off from obtaining government student aid.
The Time Magazine article asks The Job Market: Is a College Degree Worth Less?
Employers and career experts see a growing problem in American society — an abundance of college graduates, many burdened with tuition-loan debt, heading into the work world with a degree that doesn't mean much anymore.
Even worse, the article claims a Bachelors degree is now watered down. Well tell that to the people who graduated 10, 20, 30 years ago! And if this is true, why not just award those with high quality Bachelors degrees the now equivalent Masters? Talk about devaluation after the sale! There is also a huge difference between schools.
What few mention is the offshore outsourcing of services, in particular occupational sectors that require a college education.
Also, the article amplifies for profit schools, but look at that real number, a 12% overall student loan default rate in just 3 years. Now tell me the Professional worker, usually defined by those with college degrees, doesn't need labor representation and some help these days.
To find a loan default rate per school, click here.