Analysis: New Repayment Rates of Student Loans

Inquiring minds are looking at the newest data of student loan repayments and don’t like what they see.

The parameters of the analysis:

To determine repayment rates, the department looked at students who graduated or left college in the past four years with federally guaranteed student loans, then looked at the percentage of them who made at least $1 in principal payments in the past year. It weighted this percentage by the dollar amount of the loans.

The repayment rates are anemic:

Based on this measure, only 51 percent of loans are in repayment.

That means 49 percent “are not currently in repayment,” but it doesn’t mean those loans will never be repaid, says Mark Kantrowitz of

But Government is ever present to make sure we citizens are protected:

Concerned that too many students are graduating from these schools with debt they could not repay, the department decided to write new rules for for-profit colleges. In late July, it proposed rules that define gainful employment based on their former students’ debt-to-income ratios and student loan repayment rates. If a for-profit school exceeds certain limits, its new students would not have access to federal aid.

But a couple of paragraphs down the complete hypocrisy of this position is exposed:

The average repayment rate is 53.7 percent for all public colleges, 56 percent for private, nonprofit colleges and 36.4 percent at for-profit colleges, Kantrowitz says.

Does anyone seriously think that any of these rates are acceptable?

Onward through the fog…


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