Presenting The College Whose Graduates Have A 62% Student Loan Default Rate

Tyler Durden's picture

It is common knowledge by now that the US has a student loan problem. Specifically, a subprime-sized, student loan default problem, which as was reported last year, has now surpassed a 23% default rate at "for profit" institutions. Yet as all statistical measures, this one too deals in means and medians: very boring, impersonal metrics. Where the truly stunning data emerge is when one performs a granular college by college analysis of the US higher learning system, which is precisely what the WSJ has done, breaking down some 3500 colleges and universities by annual cost, graduation rate, median amount borrowed and most importantly, student-loan default rate. In this context we feel quite bad for the students who graduate from ICPR Junior College of Puerto Rico (or rather the 52% of them who graduate), with a modest $2,250 in student loans to cover the otherwise manageable tuition of $7,158, as a mindboggling 62% of them end up defaulting on their loans!

Who else made the list of the college with the highest default rates? Here is the first page of many in a descending sort by the highest student-loan default rate:

What is quite stunning is that there are 553 colleges in the US that have a student loan default rates of over 25%.

Alternatively, if one sorts by the most expensive colleges in the US to get a sense of what opportunities some of the most respected institutions in the US offer their grads (at least based on how much is paid for the education), one gets these results:

There is much more in the full interactive list (here), although we do caution that the results may be somewhat problematic, as somehow Berea College of Kentucky, which supposedly costs negative $20,746 per year, has its students borrow $6,500 on average, with 5% of them defaulting on ther loans.

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Yen Cross's picture

 Jim, I'm a "Central Bankster" not a neurosurgeon. {bones}

scam_MERS's picture

And just what kind of "diploma" can you expect to get, and what kind of students, when you run commercials like this (seen all over L.A. TV right now, btw)? A degree in rap? Watch to the end, to be fully disgusted/

http://www.youtube.com/watch?v=wjWtRiAoue8

...seems even their intended clients see through the B.S. - hilarlious parody of the ICDC commercial:

http://www.youtube.com/watch?v=3tOyd7J3wbY

Seasmoke's picture

would you hire a Rican ????????

Jack Kreuz's picture

The study is an odd one. It says that Harvard's "net cost" for the academic year is 18,000 but tuition alone is 37,000.

dark pools of soros's picture

Early kickbacks cashed for future favors

Vooter's picture

It's the ICPR Fighting Defaulters!

earleflorida's picture

and here's to you mr. president,... obamacare loves you more than you can know?,... mr. president, heaven holds a special place for those that don't default... whoa, whoa,... whoa

http://www.gosanangelo.com/news/2013/feb/16/bad-medicine/

Bad Medicine:  Deadbeat doctors not paying student loans.     nice?!

dark pools of soros's picture

so that Canada college has a 3% grad rate? Do they wrestle polar bears or something ? Is that the survival rate?

Arkadaba's picture

Lol being Canadian I had to check that one out - looks like there should be a tilde on the 'n'.

billsykes's picture

I think they offer art science, barista and hip hop degrees. 

 

I have been on their 3 yr waiting list to start on my neckbeard degree, I have write the entrance exam, and I am so nervous everybody looks so hairy. 

 

 

CPL's picture

You must be this hirsute and swarthy to enter this grad degree.

http://www.monkeynutproductions.com/Peanut_gallery/Ad_Committee.jpg

 

billsykes's picture

dAMN if I could get hairy like that, then maybe one day I could teach neckbeard class but those Greeks and hippies are so competitive.

I don't know if I have what it takes in the real neckbeard world, I may have to minor in artisanal pencil sharpening.

 

 

bonzo112358's picture

Fry: "I'm a certified college dropout."

Leela: "Please...everyone knows 20th century colleges were basically expensive daycare centers."

Farnsworth: "That's true.  By current academic standards, you're merely a high school dropout."

Fry: "What?  That's not fair.  I deserve the same respect any other college dropout gets.  By God, I'm going to enroll here at Mars University and drop out all over again."

Catullus's picture

Wow. All but 3 schools in Louisiana have less than 10% default rate.

This is like a levered crap shoot.

Shut it down for god's sake.

If it's not major university, the default rate is above 10%. They're just selling poor people the dream, aren't they?

AssFire's picture

Here is what the real deal is...

All these fuckers were always told they were awesome. To boost their confidence-every race they ran, every book they read- they were given a fuckin ribbon or award.They were not smart enough and should not have attended college- they are stupid.

So there you have our newest group of people with a deadly combination: Over confident, stupid people.

Forget the "Americans with Disabilities"...How about the "Americans with no Abilities" they are actually more helpless.

 

harami's picture

Hey man, feeling depressed because you suck at life and failed out of college?  Go complain to a shrink and he'll get you on government disability because your pathetic ass can't bothered to be confronted with the reality that you're a worthless sack of shit!

I imagine that'd be a pretty hip commercial to run on TV for all the Americans with no Abilities act.  Kind of like that petition to the white house where students want to give back their degrees in exchange for wiping out their debt.

At this rate you'll need a Masters in Lesbian History Studies just to be a janitor.

cynicalskeptic's picture

Nope - you need at least an engineering degree for one of those prime janitor spots.  Lesbian Studies dooms you to daycare assistant.

Maos Dog's picture

Maybe I am just stupid, or my age is showing, but when I went to college the first time around (like 20 Years ago) 50% of the freshman class didn't make it to the second year, and, this was EXPECTED. I think at "good" schools the number was even higher. It was the first "cut" so to speak.

Now my impression is that everyone that goes is supposed to graduate? If I ran a college, I would bounce the freshman 50% (bottom 50% gets walking papers) and on paper this would make my college look bad? 

What is a real metric for college performance then?

ptoemmes's picture

Freshman first quarter did it for most where I went.  A GPA under 1 was not all that uncommon.

 

nmewn's picture

The only real metric for college these days is the ability pay.

However one does it, through savings or debt makes no matter to them. You can be "educated" in all sorts of things these days and emerge "papered".

Art History is a good one...you can go on to a stellar career as a museum curator advising people what to dust off or maybe Queer Musicology (UCLA)...seems kinda gay to me...but who am I to judge what people get shafted on ;-)

e_goldstein's picture

The one good thing about Art History is that it teaches critical thinking skills; thus the graduates are doomed to a life of sub-par pay.

GMadScientist's picture

I'm sure your knowledge of lighting your own farts and plaques with bass that sing country songs will be a treasure for future generations to cherish.

 

BidnessMan's picture

At Georgia Tech freshman orientation back in 1972, we were told to look right and look left.  One of you will not be here next year, and the other one will not graduate.  Was true, and "Ma Tech" did not care whether you "got out" or not.  Way too many kids in college - another bubble in the process of popping.  

Interesting that the most expensive colleges are almost all art colleges.  The most math challenged students?  As in not comprehending they can never repay their student loans?  

MeBizarro's picture

Where did you get such ridiculous numbers from?  A washout rate of 50% in the 2nd year at a general undergrad program?

RebelDevil's picture

 Now my impression is that everyone that goes is supposed to graduate?

Especially with students loans, OH YES.
Not graduating almost garrentees that you will default on your balance.

A. Magnus's picture

62% of the burger flippers who graduated from that 'college' will have their wages garnished and will afford fewer Happy Meals from their new 'vocations'...

W74's picture

I noticed some of the for-profit online scam institutions (University of Phoenix, Kaplan Univ, etc.)  have default rates between 26-34%.  I don't know if anyone can find others.  The ITT Tech (kinda scammy?) around me is at 34% as well.  My own school is at 3% (with a median amount borrowed of 17K vs my $0.) and the private college my wife went to is at 1% of course she eventually got accepted to a doctorate program.  Honestly I wouldn't recommend kids go to college these days and if it weren't for the GI Bill I wouldn't have bothered.

Downtoolong's picture

Hey, every school wants to be rated tops for something.

JLee2027's picture

With debt-based currencies, everyone, eventually defaults.

wagthetails's picture

Excellent info.  immediately withdraw all student loan availaiblity to any colleges with default rates higher than 10%, great than 20%? revoke their license to operate as a educational facility.

Jim B's picture

I especially like the "colleges" with sub 20% graduation rates!

dwdollar's picture

Hahahahahahahahahaha...

You're joking right?

The goal of the entire educational system is to make creative-less, ambition-less, moral-less, debt slave followers for our overlord bankers. Everyone has an idea about how things could be better... the truth is many of those ideas could work, but none of them will be enacted, because that isn't the agenda.

The fox is in charge of the hen-house. Am I the only one who sees this?

RoyAnne's picture

Wonder what the default rate would be if you added all the parents having to pay for their kid living in the basement because they co-signing some of those student loans. The one that cannot get a job.

cxl9's picture

Require the colleges to be co-signors on student loans. Problem solved. Let's move on.

Overfed's picture

I hear DHS is hiring.

zerotohero's picture

The West keeps consuming like there is no tomorrow while China is working like HELL to take over as the Power Nation of the world. Forget College and learn Mandarin.

Redhotfill's picture

IF they could learn mandarin, they would be able topass the classes graduate and get jobs lol.

MeBizarro's picture

That's why those in power who can move their wealth out of China are in large amounts and hedging their bets applying for visas in Canada, US, Australia, and a host of other places. 

IridiumRebel's picture

My daughter is gonna learn to weld or change timing belts. I'm about to graduate and the learning is a joke.

IridiumRebel's picture

I wish I could FX trade like you, but I'm not savvy enough. I like that your getting more up votes. +1

Yen Cross's picture

Zero Hedge isn't a popularity contest... The smart peeps know each other. I have been on a rant for the last few days because I'm fed up with the market bullshit.

cynicalskeptic's picture

Blacksmithing may be the growth career of the 21st century.

syntaxterror's picture

We are not a deadbeat nation!

Marty Rothbard's picture

This has been happening for thirty years.  Diploma mills get people who have no business being students to take out loans.  The difference now, is that they are not dischargeable, and there are many fewer jobs.  But the democrats still keep screaming about more education.

 

billsykes's picture

I love the low grad rates combined with a bullshit college and their low quality bs degrees. It should wake people the fuck up and start to use behavioral or critical reasoning skills to cut thru these "truths" we have been told over and over again.

Lies 

I am a father working hard at 2 jobs to give my kids the education I never had so they can have a better life. 

(just go mow lawns for the govt in CA) 

You should own a house.

(shake head)

Pay your taxes.

(because all the rich people do)

Don't disobey authority.

(they have guns to protect themselves, not you, and they are never wrong) 

 

 

Pairadimes's picture

On the plus side, all of the future FEMA Re-Education camp campuses are now complete and ready for re-purposing.

Redhotfill's picture

I didnt see B'uerro Rican Taco flavored kissing as a major on that webpage.

yogibear's picture

Bernanke and the Fed's motto: "From one bubble to another. Always be thinking about creating the next bubble".

At the Federal Reserve PhDs are initated by trying to see who can make the largest bubble.