WASHINGTON, Oct. 6 (UPI) — Nearly 600,000 American students who were supposed to start repaying their loan debt in recent years were unable to do so, new government statistics have shown — among other revelations.
The U.S. Department of Education statistics shows that 11 percent of the 5.2 million students set to begin repayment in 2012 or 2013 didn’t. That amounts to 593,000 students.
The data also revealed other significant information:
– The overall default rate declined by 0.5 percent since 2015
– Students from economically deficient backgrounds were more likely to default than students from more fiscally stable statuses
– Students who attended an institution that had the words “tech” or “business” in its name were more likely to default
– Students at for-profit colleges are more likely to default, accounting for 35 percent of the U.S. default population
The schools with the highest cohort default rates in the United States include Larry’s Barber College in Chicago, the New Life Business Institute in New York and Jay’s Technical Institute in Houston.
Additionally, according to the data, historically black institutions have a cohort default rate of 17.1 percent. The national average is 11.3 percent.
Nationally, New Mexico was found to have the highest default rate (15.5 percent) while Rhode Island has the lowest (4.3 percent).
“Even with progress, we know considerable work remains ahead,” Education Secretary John B. King Jr. said.