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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tom a taxpayer's picture

Anita: Girls here are free to have fun. She is in America now.

Bernardo: Puerto Rico is in America now.

nasa's picture

90% of ICDC's students have no business in 'college', but the factory job they would have taken out of high school is now in (insert name of random third world nation here) so some .001% could move the stock price up .01.  At this point in the game these students would get a better education at one of those private prison work camps. enjoying three squares a day and a cot and on top of that they would be walking out the doors debt free.  Welcome to the New World Order...  

trendybull459's picture

The best way to keep the Economy strong is investing in education by making it free to all citizens:Germany,USSR(still Russia but they already taking theft for institutional education pumping up paid and down free education),country where its a gap in education will have unrest and power change as their economic conditions will arode!

follow us:

ZeroAvatar's picture

WOW!  I see you gave up on the 'Russian with a lisp' schtick.  Kewl.


Obama's already 'giving away' education with the Dream Act.  Just NOT to Americans.

CaptainObvious's picture

"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!"

How does one default on a $2250 loan?  Shit, that doesn't even pay room and board for one semester at a public university in the states.

boricuadigm-shift's picture

As a Puerto Rican that has been in this site more than most people here (since blogspot) I will say the following:

1. A significant portion (60%) of us are hard working and skilled mofos
2. We do your jobs for 20-50% discount and better
3. I'm a smart mofo that has been stacking for 5 years now and get all the shenanigans going on in this country thanks to this and similar sites.
4. We sure have lazy mofos. We are one of the highest consumers of food stamps and other entitlements. Guess what? Most of the states are adopting our model. That is even dumber. We were the first to figure out how to game the system.
5. All generic Puerto Rican jokes are funny, so keep them coming. Be aware that by doing so, you are letting us know how ignorant and small minded you are.


Boricuadigm-Shift Bitchezzz!

Son of Loki's picture

Es una vergüenza que no sea posible que se trate igual a todas las personas.


This student loan scam crosses all geographic and cultural boundaries. In fact, the TV ads look to me directed at the lower socioeconomic groups proming (unrealistic) hope and change.

Smuckers's picture

Sounds like 62% of graduates went with a finance degree.


monopoly's picture

And how about this...

It Takes a B.A. to Find a Job as a File Clerk

So this nice receptionist has a 4 year college degree in fashion design, owes over $100,000.00 in college debt and gets a job as a secretary. The law firm advised even the document runner must have a college degree. Law of supply and demand. More companies only hire college graduates. Not bad, earn $12.00 bucks an hour, pay off $100,000.00 in loans, that should take about.......Oh, never mind. 

And the NY Times spins this in a good light. Pathetic.

NumberTwo's picture

I'm living the dream right now with 2 tuitions/year for the next 4 years. I refused to let my kids enroll in debt camp - and set a limit of $10K total debt that they could come out with.  They need to have some skin in the game - just not sell themselves down the river.  One in private college, one in Big 10, and the last one likely to go ivy league - but trying to convince her there are better options than going to school at Chen University.

monopoly's picture

It has all changed my friend. College not what it used to be. And, where are these high end jobs coming from to pay back this debt. Our demise is set in stone I am afraid.

Son of Loki's picture

Bend over taxpayers; Ben is about to take a Big Dump on you again as losses are passed on to the innocent Middle Class bystanders.

NumberTwo's picture

Friends of ours oldest son went 3 years, changed majors, couldn't get with the program and now is the proud owner of $68K of debt with nothing to show for it.  Who the fuck lets their kids go in this deep at the age of 18? He's working two jobs, neither pays more than $10/hr, and will probably never go back.  Even if he figures out what he wants to do, that $70K millstone will be around his neck preventing it.  WTF are people thinking mortgaging their dim futures like this?

torabora's picture

Hey, mine is 23rd!!!!

Smuckers's picture

But, but, if 62% default, yet 25% are illiterate - then that means over 15% can't read their "Past Due" notices...but may be able to pay after all.






zwscott33's picture

haha unete la revolucion puerto rico, salte los estados unidos

reader2010's picture

Don't they ever teach any tools of thinking there?

MeBizarro's picture

Problem here is what has been known all along (too many pigs at the trough who provide very marginal ROI).   The gov't website is a step in the right direction but not nearly far enough.  Still not nearly enough information though on what the economic prospects are for college graduates though from particular institutions to make truly informed decisions as a consumer.  It's the biggest problem in higher education & has been for years. 

Classic asymmetric information problem and sometime that Kenneth Arrow talked about more than 40 years ago now.   Coupled with large-scale spigot of gov't funding, it is a recipe for disaster.



MeBizarro's picture

Why does the conversation on any thread related to higher education have to devolve to general idiocy including the recommendations that 'only fools go to college' vs the mindless crap on the left that everybody seemingly belongs in college and the gov't should make funding available to make this happen even at the crummiest colleges/universities (if you call them that). 

Like almost anything in life, the conversation is nuanced and both sides usually have some very valid points. 

MeBizarro's picture

The goal should be to graduate from any BA program with the lowest amount of debt possible.  Ideally, no debt if you are fortunate enough.  It really did surprise me though on this list just how many crummy 'colleges' there are in the US.  It is ridiculous these colleges continue to get reaccredited and the gov't allows students to attend them while receiving federal loans. 

SilverMoneyBags's picture

The government should only loan money to people willing to attend in demand programs like computer science and engineering, not useless programs like relgious studies or philosophy.

RebelDevil's picture

I like your intent, but it could backfire. Science, math, and engineering are the most difficult of all subjects, so it's natural to expect a higher drop-out or major-change rate. There's great reasons why they're in demand, one of them being that you have to have above average intellegence.

Btw, the military already does this to an extent. The ROTC programs (which provides full-tuition scholarships) is practically begging for engineers of all kinds (in exchange for service after graduation.)

Bloodstock's picture

College prep should teach the kids about the reality of financing college and what that entails for payback. Throw in a few college graduates (volunteering to add to their free labor intern resume) to explain that their really are "no" jobs out there worth a hill of beans and presto the debts lower cause more kids wake up and say what the fuck.

AnAnonymous's picture

'American' desire to get others to perceive 'americans' for what they are not.

'American' students, youngsters are not impaired by debt. They will renegate on it as soon as they judge it valuable. Cause: their parents created that system of debt, not them. So they can not be responsible for that. The usual 'american' mantra.

At the moment, the huge loans taken up and the consumption of resources coming with them, ensures that the educational processes are mostly located in 'american' societies.

Without the huge loans, the resources will be redeployed elsewhere, shutting down 'americans' from the educational process and moving it elsewhere.

But hey, much better to paint 'american' students as victims because 'americans' want to be perceived as victims.

Victimhood is high amongst 'americans'.

TheFourthStooge-ing's picture

AnAnonymous desires to get others to perceive 'americans' for what they are not.

He believes his crackpotted theories about the middle class being the king class have feet on a solid ground, when reality is his claims have no ground but stand on floaty clouds infirmed.

He gives painting on 'american' students as opportunitists because he wants them to be perceived as emporers.

Scapegoattery is high amongst AnAnonymystics.

But hey, getting high climbing the crazy beanstalk of Chinese citizenism makes his floaty clouds look solid, so might as well build his fantasy castles on that neighborhood.

akak's picture


Scapegoattery is high amongst AnAnonymystics.

But hey, getting high climbing the crazy beanstalk of Chinese citizenism makes his floaty clouds look solid, so might as well build his fantasy castles on that neighborhood.


You have hitting the nib of the mattering thing sagaciously with much vigorous.

TheFourthStooge-ing's picture


Your speeching gives diligently the commentated with qualityness. Much crustiness diatomaceously.

akak's picture

Whoo!  That is the good one.

Notwithstandingwise, efforts to kick the can of Chinese Citizenism monolization of the speeching means, inability to self-ignite, thrusting blame to the posterior, farming the bore and exporting the geek are more signs of psychological projectionistic crackedpottery of nightsoiled Chinese shitizenism inspirationated by The Great Stoolman himself, Mousy Tongue.

But as the old saying of fabled past goes, when in Beijing, do your doody (on the roadside) as the Chinese do.

FLHRS's picture

The best education/baby sitting institution is the military.  They are good at taking spoiled little brats and putting them with a bunch of other spoiled little brats, they pay them the same and treat them the same.  They educate and they reward hard work and commitment.  This candy ass, entitled generation should all serve, it would do them good.

JenniferS's picture

In a tighter market for legal services, law firms are less able to absorb training costs for new lawyers; costs that they were often able to pass on to clients in the bubble years. Thus, to the extent that a law school undertakes curricular reforms that make its graduates cheaper to train and more no credit check loans to apply and that enhance the cost/benefit ratio of hiring those graduates, the school confers a competitive advantage on its graduates in a tight market that was of less significance when market conditions were different. In that sense, current market conditions potentially enhance the case for curricular reform.