At 108 US Colleges, More Than Half Of Students Haven't Paid Even $1 On Their Student Loans

Tyler Durden's picture

That the student loan bubble is one of the many "subprime" crises (because as of this moment there are just too many asset bubbles to count thanks to 7 years of global ZIRP, NIRP and QE) has been documented here ever since 2012. We also explained that the main reason for soaring college costs is the cheap and easily accessible government-funded student debt, which at last check was over $1.2 trillion and rising exponentially. 

Today, the WSJ had an article on just this, titled "U.S. Helps Shaky Colleges Cope With Bad Student Loans" in which it explained in fine detail what our readers knew already, namely that it is the government's direct intervention with trillions in "aid" that is making the debt default problem far more acute than it would have otherwise been, and leads to keeping millions more "students" in college where they end up learning no marketable skills in a job market that rewards mostly waiters and bartenders, yet loads them up with untenable debt.

Like we said: nothing new. There was however one stunning fact buried deep in the article.

While we knew that overall student loan default rates for all US colleges were in the 8-10% range based on the Fed's quarterly consumer credit data, what was stunning is that the "non-repayment" rate, or the percentage of students who haven't made a single dollar toward their loans within three years of leaving college is a crisis-worthy 21.3%. This means that of the millions in college graduates from the 2010 and 2011 cohort (and since then the job market for recent graduates has gotten worse), more than a fifth don't have either the means or the intention to repay even one of the tens of thousands of dollars they owe...


... which means that ultimatley it will be up to taxpayers to once again foot the bill.

But wait, there's more. Because while 21.3% may seem like a lot, and it is, the number rises to an absolutely stunning 50%, or half of all students, when looking at the 108 worst college offenders in the US. From the WSJ:

At 108 four-year colleges, at least half of all students hadn’t paid even $1 of what they owe within three years of leaving college, according to an analysis by The Wall Street Journal of the latest government data. Those colleges got more than $10 billion in federal student loans and grants last year.


Arkansas Baptist’s nonpayment rate on student loans was 88%, the highest of any four-year college in the U.S. More than four out of every five students drop out. Fitz Hill, president of the historically black private college, says the numbers look bad mostly because Arkansas Baptist enrolls poor students.

Sure, there is always a reason. And just for future reference, here are the25 colleges whose students will be the first to demand a bailout of their student loans when they stop pretending they will ever repay, and go straight to the "default" column wihout passing go, if collecting tens of thousands in taxpayer funds.

The full list of all US colleges tracked by the WSJ can be found here.

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PoasterToaster's picture
PoasterToaster (not verified) Dec 22, 2015 4:46 PM


drendebe10's picture

The progressive liberal democrap colleges should have to eat that debt. 

krispkritter's picture

I think they figured out why it's called a BS degree.

JLee2027's picture

Yes. And debt slavery for life.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) JLee2027 Dec 22, 2015 6:08 PM


And if you dare violate my safe space with your micro-aggressions I'll have you beaten to a pulp by campus security while I mock you for not being tolerant like me.

When will the bright chillin's in college learn that they are being screwed, once again, by "FREE" money from the gubmint?  "Free" gubmint money drives tuition prices through the roof.  Get rid of the gubmint involvement and colleges would have to have reasonable tuitions.



Ignatius's picture

I hope they all default on the banksters.

It didn't used to be this way, college used to be affordable and in line with wages.

J S Bach's picture

I'm sure most of the delinquent deadbeats are of the 70 IQ scholar mold (Obama's people).

Ness.'s picture

A few facts about the leader, Arkansas Baptist College.

92.7% black.

4% graduation rate (after 6 years).

88.9% of "qualified" incoming students receive fiancial aid.


Bonus fact:  Located on 1621 Martin Luther King Drive, Little 'Clinton' Arkansas.

fleur de lis's picture

Years ago when this started spinning out of control the graduates did default on their loans. They declared bankruptcy which affected their credit for 7 years. That suited them just fine, because they could work and live at home, and then afterwards do what they wanted. It was worth it -- a few years of inconvenience and they were scot free.

Students who diligently pay back their loans spend decades under crushing debt. Often they can't even find employment in their fields of study, and take whatever they can get. Many companies will train employees for what they want, so the debt is not always worth it.

Until the schools themselves have skin in the game this will continue. Courses they offer should be listed by degree of employment, so that the students can make an informed decision as to risk. Or if they offer dead end degrees, they should be made to payback. Academia has been running this racket too long.

goldsansstandard's picture

Members of the FSA think that taxes are for the other people.

Everybody , all over the world, taxpayer, pays for this bS by inflation, , falling hardest on the poorest.
ZH would do better to not say that taxpayers pay. Everybody pays.

The Greek horse's picture

The Greatest bubble ever created.. 

sodbuster's picture

A gal my wife works with, owes $56k in student loans. Has a good paying job. So does her husband. She told my wife she has yet to start paying. When my wife asked why, she said she was told to either NOT pay, or pay as little as possible, because the "government" might forgive the loans. Who told her this, I do not know, but I'm gonna try and find out. Sounds about right on the mindset, though, doesn't it?

Dog Will Hunt's picture

It's dead-on with the mindset, though the government will first either provoke a crisis or wait for one.  The debtload is simply too high to be feasibly paid back.  

Citxmech's picture

Any bailout will have more to do with life-support the loan companies than helping any of the borrowers.

OldPhart's picture

I fucked up and paid off my total college loan of less than $5k.

OldPhart's picture

I'm always dumb.  I'm the kid that colored his school wagon green instead of red,  Because my wagon was green in Kindergarten,  Totally fucked with the school from  then on.  The roots of a rebel.  What color is your wagon.

RafterManFMJ's picture

It's not to late to go back, get a degree and 75K in debt...

OldPhart's picture

I've got about twelve units to complete a masters. (Had to got to work)  These days I'd prefer to nuke commuter U than attend,  I cna't see waht they could provide to me, without thousands of dolllars, that I don't alreadyknow and do (most likely beyond their comprehesion.)  I can't imagine a Maters course to someone who has twenty years in controllership and is currently Controller for a total of fifty-two entities in divrse fields; mining, ready mix cement, retail steel sales, steel fabrication, real estate, concrete recycling, logistics and, apartment management,  I don't need another degree.  I'm not leaving here.

FixItAgainTony's picture

An entire "industry" has grown up around vague pronouncements from the Fedcoats of a G.I. Bill without the G.I. part:

FireBrander's picture

Fail to pay? No tax refund for YOU!

No EIC, No Child Credit...NO Refunds!

Happened to someone I know... all excited about a fat EIC check... filed return... got a letter from the IRS saying the refund was applied to their loan balance.

11b40's picture

That would pretty much be all of them, wouldn't it?

Chupacabra-322's picture

Hey, they should of taken the DHS major. Many colleges now offer graduate degrees for the Totalitarian Authoritarian Militarized Police State.  Nothing like giving a beat down to an innocent Civian.

xrxs's picture

1.2 trillion in outstanding debt, 1/15th the size of GDP

RmcAZ's picture

Is there a triple inverse ETF for shitty bankrupt private colleges?

RealistDuJour's picture

I can guess who one of these deadbeat "grads" are... ;)

At 108 US Colleges, More Than Half Of Students Heven't Paid Even $1 On Their Student Loans
Larry Dallas's picture

These don't look like great schools.... I mean who graduates from a "Baptist" school and actually has skills that are I demand?

ali-ali-al-qomfri's picture

agreed Larry Dallas,

I 'll take Rust College for their oxidation mitigation degree program,

second to none.

as we all know....rust never sleeps.

(nor do those in debt)

vollderlerby's picture

Too complicated for the IQ70s. Get a degree in basket making with a minor in mining and join the Hoffmanns on Goldrush.

Rainman's picture

Now let's have a round of applause for these new recruits in the Free Shit Army !

nevertheless's picture

Yes, because college SHOULD cost $30k a year, fucking moron, YOU need to go to school...


You people just love to focus on those who have the least power and the least to gain. Not the fucking banks who are raping society...

booboo's picture

Right, it was 250.00 a year when you signed up eh?

sun tzu's picture

They were forced to enroll in a shitty $30K a year college and take out all those loans, right you cocksucking maggot?

You perpetual victims and the bankers can fuck each other up the ass for all I care.

vollderlerby's picture

Maybe there's some middle ground between cocksucking maggot and something resembling a point?

I was able to work my way through college because tuition + room & board was about $16,000 a year for the quality school I went to. Minimum wage was $5.25, so it took about 3,050 hours of minimum wage work to pay for the damn thing.

Now it's 50,000 at the same school (just checked) and minimum wage in that state is 7.25, so it now takes 6,900 hours of minimum wage to pay.

So yes, there is the free shit army, there's Obozo's socialist paradise and the cocksucking maggots.  All true.  But it's also true that people have to work twice the hours to pay for college.

Disclaimer:  This study was quite unsicientific but the point remains.

Platinum's picture

Arkansas Baptist’s nonpayment rate on student loans was 88%, the highest of any four-year college in the U.S. More than four out of every five students drop out. Fitz Hill, president of the historically black private college, says the numbers look bad mostly because Arkansas Baptist enrolls poor students.

When our school's default rate hits 88%, you're going to see some serious shit!

JLee2027's picture

As long as money can be conjured out of thin air, problems can be hidden. For a time. Then all hell will break loose.

I'm in a neighborhood that built large homes on former farmland. It became a 95% White mega paradise away from the city. Then the geniuses in charge decided to build apartments and along with government handouts, massive numbers of blacks, hispanics, and some asians have poured in. I think we're outnumbered, the 2010 Census claims the area is still 70% White, but I call BS.  You don't see Whites on the street that much anymore. 

The reset can't be far away, and those apartments will be turning into ghettoville or emptied, bad or worse than Baltimore City. Can't wait.

fiftybagger's picture

Well, at least the ones that graduate are getting a serious edumucation ;-)



Urban Community Leadership

202 African History

This  course  examines  the  history  of  Africa from  its  encounter  with  colonialism  to  the  era  of independence  and  neocolonialism.Coverage  includes  colonial  systems  of  governance,  African resistance  and  nationalism,  the  independence  movement,  and  the  struggle  for  liberation  in Southern Africa.

220 Private Reading

This course is a self-paced course based on selected reading in books, magazines, and newspapers on Africa American issues. This course is open to any student who is interested in undertaking a Private Reading course with a member of the department.

300 African American Cinema, Film and Hip-Hop

This course intensively focuses on more recent films with Black subjectivity in both dominant and independent cinema.  The course examines the legacy of both “Blaxploitation” and the radical film movement of the early 1970’s on artists of the 1980’s and 90’s. It will also examine the effect of the Hip-Hop culture on Black America. The class correlates the climate and cultural history with various genres of music that led to Hip-Hop music. Individual artists are studied not in isolation but as part of the larger cultural context.

312 The Sociology of Whiteness

This course is intended to use the subject matter of Whiteness to enhance literacy, critical thinking, social awareness, and mastery of some of the skills related to general education. It seeks to assist the  student  in  making  a  better  presentation  of  self  in  everyday  life,  as  well  as  enhancing  an understanding of other cultures and values.

Skateboarder's picture

LOLtastic... and here's another excerpt from the catalogue:

Arkansas Baptist College offers seven (7) baccalaureate degrees and seven (7) associate degrees:

The Bachelor of Arts in Urban Community Leadership
The Bachelor of Arts in Christian Education
The Bachelor of Arts in Criminal Justice
The Bachelor of Arts in Human Services
The Bachelor of Arts in Music Performance
The Bachelor of Arts in Public Administration
The Bachelor of Arts in Religious Studies
The Bachelor of Business Administration with Concentrations in Accounting, Business
Administration, Entrepreneurship, and Sports Management
The Associate of Arts in Urban Community Leadership
The Associate of Arts in General Studies
The Associate of Arts in Christian Education
The Associate of Arts in Music Business
The Associate of Arts in Public Administration
The Associate of Arts in Religious Studies
The Associate of Business Administration

All excellent, useful degrees that impart employable skillsets, of course.

sun tzu's picture

The only useful degree I see is accounting, although I doubt any of their graduates can pass the CPA exam.

Main_Sequence's picture
Main_Sequence (not verified) Dec 22, 2015 4:52 PM

Wow, that's shocking considering the copious amounts of solid, high-paying jobs available in the fucking market.

Salsa Verde's picture

Debt collectors are not allowed to violate 'Safe Spaces,' it might hurt student's feelings.

One Day Only's picture

You joke, but I wouldn't be surprised in the least if there was some legislation passed protecting fragile egos from nasty collection phonecalls.

Normalcy Bias's picture

I would ask if these are predominantly African American schools, but that would be racist.

Gulfcoastcommentary's picture

I'm going down the list and checking each on the internet. So far, they are all Black schools. Just as you expected.

nevertheless's picture

That would be, if your only goal was to somehow associate skin color with morals, and we all know you would never think to do that...You would not focus on trade deals that fucked over Rust Belt economies and textile factories in the south, predominately effecting African Americans ...You idiots will forget all context to support racism. 




sun tzu's picture

Only blacks worked in manufacturing and now they're unable to learn any other skills? That's a mighty racist ASSumption you made, cocksucking maggot

Normalcy Bias's picture

Always fall back on the race card, eh? What I was alluding to is the undeniable culture of irresponsibility and dependency that's been fostered within the African American community by the Democratic Party since the LBJ era, which has hit warp speed during the Obama era.

How many of the kids taking out these loans expect to ever have to pay back as much as a dollar of it? The fact that so many haven't even repaid so much as $1 of their loans reveals your answer, Dipshit.