Students in Distress

Student loan debt ballooned during the Great Recession, and student loan default rates have nearly doubled since 2007. One leading explanation for the rising default rates has been the growth of “non-traditional” borrowers attending community colleges and for-profit institutions. The tendency of these borrowers to be older, from less-wealthy families, complete programs at lower rates, and have weaker labor market outcomes (employment and earnings) all contribute to higher default rates.