WASHINGTON — Students who attended for-profit colleges were twice as likely or more to default on their loans than students who attended public schools, according to a federal study published Thursday.
Federal regulations are designed to make sure that colleges that don’t offer a good value to students, don’t get student aid money.
Corinthian Colleges will put 85 of its U.S. campuses up for sale and close the remaining dozen under an agreement with the U.S. Department of Education. The for-profit college chain operates campuses under the names Heald, Everest and WyoTech. It has more than 70,000 students across North America. It’s the largest-ever college, by enrollment, to be shut down in this way.
The average loan-holding 2014 college graduate will have to pay back $33,000.
The class of 2014 deserves our congratulations, but not for graduating — though that’s nice, too — but for earning one of the more dubious distinctions in recent memory: You’ve officially been named “the most indebted class ever.”
Students leave college with an average $29,400 in loans.
The appeal of a $10,000 college degree is impossible to deny. Average tuition for a public university is more than $35,000 for four years. Students leave college with an average $29,400 in loans. Who wouldn’t get behind an effort to offer bachelor’s degrees that won’t shackle young people to debt for decades after they graduate?
Futurist Thomas Frey: In 1791 when Mozart died, his 29-year-old wife, Constanze Weber, was forced to earn a living, so she began selling her late husband’s manuscripts and turned the former messy paper scraps lying around the house into a tidy income stream.
Swedish college students still graduate with a ton of debt.
Colleges and universities in Sweden are free. But students there still end up with a lot of debt. The average at the beginning of 2013 was roughly 124,000 Swedish krona ($19,000). Sure, the average US student was carrying about 30% more, at $24,800.
Student debt is second largest source of U.S. household debt, after only mortgages.
Some of the greatest colleges and universities in the world are in the U.S. But with the student debt load at more than $1 trillion and youth unemployment elevated, when assessing the value of a college education, that’s only one part of the story.
Citigroup and Bank of America were the reigning champs of finance in 2006.
The reigning champions of finance in 2006 were Citigroup Inc. (C) and Bank of America Corp. (BAC). As home prices peaked, they were leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits.
One quarter of students defaulted within 3 years of starting repayment on their college loans.
About one-quarter of students who took out federal loans to attend for-profit colleges defaulted within three years of starting repayment, according to a new federal analysis.
Consumers are charging less on their credit cards, paying down their balances and steering clear of penalty fees.
After the recession forced credit card companies to purge their rosters of the riskiest loans, the industry is facing a new problem: customers who are too good.
Sam’s Club will offer loans to it’s small business members.
Wal-Mart’s Sam’s Club chain is partnering with a lender to offer loans of up to $25,000 to its small-business members. The program is one of several moves the retail giant has made to offer banklike financial services to customers, in part to help them spend. It also comes as the retailer tries to improve profitability at its warehouse-club chain.
Graduates struggle to afford the decades of payments they face.
Like many middle-class families, Cortney Munna and her mother began the college selection process with a grim determination. They would do whatever they could to get Cortney into the best possible college, and they maintained a blind faith that the investment would be worth it.