Those of you with an interest in default rates — student loan default rates, in particular — will want to set aside a few minutes to read the following:
Chronicle Of Higher Ed: Student-Loan Default Rates: Understated
Of course findings such as the following will come as a complete and utter shock to everyone (not!):
One in every five loans that entered repayment in 1995 are in default? Yikes. That is nasty. As in, subprime nasty. This is worth mentioning because, according to the fine folks at S&P in July, 2009 …
So the folks issuing student loans to pretty much anybody with a pulse still have some work to do to reach those vaunted levels we associate with subprime default rates. Keep at it, guys! You’re making progress!
Back to the Chronicle piece:
Boy — this would be really troubling to hear if we didn’t recognize that student loans are undoubtedly “good debt” meant only to help you reach your dreams!