"For Profit" online colleges and universities have the highest loan amount and default rates among students.

Being Indebted to For Profit School

Though some colleges dispute the numbers, the Department of Education says that students at for-profit colleges represent about 10 percent of the nation’s college enrollment. They take out about a quarter of all student loans and grants and of all the students across the country who default on their loans, nearly half come from for-profit colleges. And when students default, it is taxpayers who pick up the tab.

Some for-profit executives, as well as an industry trade group, acknowledge that their students are more likely to default, but they say it’s because their schools serve a low-income population that is underserved by traditional colleges. They also say that many students over-borrow by taking out loans to cover things beyond their tuition. For example, students will take loans out to cover their living expenses. That is money that the schools never see.