Students at for-profit colleges defaulted on federal loans at a 25 percent rate, more than three times the rate at private, nonprofit colleges, according to data released today by the U.S. Department of Education.
Corinthian Colleges Inc. and Washington Post Co.’s Kaplan Higher Education unit had campuses where the default rate exceeded 30 percent, which may trigger the loss of student aid under rules that take effect next year, the data show. Colleges where more than 30 percent of students default during the first three years they’re required to make loan payments may lose their eligibility for U.S. student aid.
