Student Loan Repayment Much Worse Than We Thought

by David Grasso GenFKD

A short article in the Wall Street Journal today confirmed our worst fears: Student loan repayment simply isn’t happening for millions of borrowers. We knew it was bad, but it’s much worse than we thought.

Evidently, some of the Department of Education’s statistics were completely off, and they readily admitted in a memo that “it had overstated student loan repayment rates at most colleges and trade schools.” Following the admission of a statistical blunder, they provided updated stats that paint a picture of a much more distressed picture of the student debtor population.

The error affected the results of the College Scorecard, a website that helps students make smart financial decisions when choosing a place to study. A great deal of the information on College Scorecard shows potential students their Return on Investment (ROI) on their education, based on a given school’s postgraduate outcomes.

Key statistics include average salary after graduation, average indebtedness, and average loan repayment rates. As mentioned, the embarrassing error revolved around loan repayment.

Just how off were the numbers?

According to the Wall Street Journal’s analysis, the Department of Education had “inflated the repayment rates for 99.8 percent of all college and trade schools. No college saw its repayment rate improve under the revision, and some schools saw their seven-year repayment rates fall by as much as…

To read the full article, click here!

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About Editor 538 Articles
With a background in politics and the law, comedian and best selling author Tim Young brings an edgy conservative take on the day’s news and everyday life to venues and readers across the country. His singular view of contemporary America has been featured by stalwarts of the conservative movement like CPAC and Fox News, yet finds itself equally at home challenging thought leaders from the left at the National Press Club and The Huffington Post. Tim has performed in theaters, comedy clubs, and at colleges nationwide with everyone from political insiders and media talking heads to the man-on-the-street subject to the quick wit and snarky attitude that feeds his appearances on dozens of talk radio shows including Fox News Red Eye, HuffPo Live, CNN, and Russia Today. Tim also runs his mouth everyday to a growing fan base of tens of thousands on Twitter who don’t seem to care that he’s from Baltimore.