Jobs for recent graduates have proven hard to come by, and a growing number of recent graduates have been defaulting on their loans.A larger number of recent college graduates are getting an education in loan default, according to a U.S. Education Department report released Monday. U.S. students who exited college and entered student-loan payoff plans in the fall of 2007 were 52% more likely to default within two years, compared with students who began paying off their loans three years earlier, the report concludes.

The findings illustrate the challenges that recent graduates have faced of entering the workforce as the economy has slowed. For a growing number of students in the recession, diplomas have come with financial difficulties.

Of the students whose first loan payments came due Oct. 1, 2007, 7% defaulted before Sept. 30, 2009, the Education Department says. The default rate jumped from 6.7% a year earlier and from 4.6% three years earlier, according the report.

"Many students are struggling to pay back their student loans during very difficult economic times," U.S. Secretary of Education Arne Duncan said in a statement. "Far too many for-profit schools are saddling students with debt they cannot afford in exchange for degrees and certificates they cannot use."

Students who attended for-profit schools operating two- and three-year programs were about three times as likely to default on their loans as students at four-year public universities, according to the report. For-profit students represented only 25% of all student borrowers, but 43% of the defaulters, the Education Department says.


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cyberbeano

vulgarity and abusive language will be blocked, so I can't say anything about college costs.

September 14 2010 at 8:19 AM Report abuse rate up rate down Reply
sjoberdix

A college education is yet another on a long list of scams that plague this nation. Its over rated, when its only a stepping stone and since there’s no jobs it a poor value on the dollar. Your paying on something with no return. Just like our homes. There’s no quick or easy way to master your trade. Experience and lessons learned are the true educator. This way companies short change their customers when they get rid of 25 years experience for cheap a college grad. They get big profits and the customer get inferior products. Don't waste your money on anything that doesn't give you a return. Its as simple as that. That how we bring down the to big to fail. Not one of the bought politicians can control how you spend your hard earned cash.

September 14 2010 at 6:24 AM Report abuse rate up rate down Reply
littlebeaper

I resent jm59821's implications and comments. I graduated with a Masters just as the economy was going south. I have every intention to pay back these loans! I just can't right now! I am not a deadbeat,nor are my parents-same as millions of others out there, trying to stay afloat and barely making it one day at a time. I certainly am not looking for a bailout and am not a bum. I am glad, jm if you can pay for your education and bills, that is good. But don't make assumptions of those of us who can not right now.

September 14 2010 at 12:16 AM Report abuse +1 rate up rate down Reply
1 reply to littlebeaper's comment
jm59821

Deadbeats like their useless parents. Take what you can get, and give nothing back!! No wonder the country is falling apart. Promises mean nothing, contracts mean nothing, and if you get into trouble the government will bail your useless, lazy, lying ass out. But the gutless young bums will find out, that they reap what they sow. At some stage soon, even the spineless, self serving politicians won't be able to keep them afloat. The sooner the better!!

September 13 2010 at 11:09 PM Report abuse rate up rate down Reply
1 reply to jm59821's comment
Michael

amen

September 13 2010 at 11:51 PM Report abuse rate up rate down Reply