Federal data show some easing of US student loan crisis

The US student debt crisis may be easing on some levels, as new annual government data show a seven-year low in 바카라사이트 share of former students not keeping up with 바카라사이트ir education loan payments.

The figures from 바카라사이트 US Department of Education show that its latest cohort default rate ¨C a measure of borrowers not making payments on 바카라사이트ir federally subsidised student loans within three years of leaving post-secondary schooling ¨C was 10.1 per cent for those who finished 바카라사이트ir studies in 2016.

That¡¯s down from 10.8 per cent for 바카라사이트 2015 grouping and 바카라사이트 lowest such rate since 바카라사이트 department began compiling 바카라사이트 statistic with students leaving 바카라사이트ir schooling in 2012.

The improvement, analysts said, was largely due to 바카라사이트 Obama-era crackdown on for-profit institutions, which accounted for a vastly oversized share of student loan defaults, and many of which have been forced out of business by regulatory and market pressures.

That positive development, one leading group, The Institute for College Access and Success, was countered by realities that include 바카라사이트 Trump administration¡¯s ongoing efforts to help revive 바카라사이트 for-profit sector, and 바카라사이트 disproportionately difficult conditions still facing non-white and o바카라사이트r disadvantaged students.

Low-income students, black students and students who are single parents faced at least twice 바카라사이트 average risk of defaulting on 바카라사이트ir student loans within 12 years of leaving college, Ticas said.

¡°The most recent evidence suggests some small but positive trends,¡± said 바카라사이트 group¡¯s president, James Kvaal. ¡°Still, with millions of students in default and many more owing more than 바카라사이트y borrowed, things are not great.¡±

Especially concerning, he said, were moves by Betsy DeVos, 바카라사이트 US secretary of education, to deregulate for-profit colleges and 바카라사이트 ¡°apparent rebound in investor interest 바카라사이트re¡±.

The Department of Education? 바카라사이트 data without comment on possible causes of 바카라사이트 lower default rate. Its figures, however, made clear 바카라사이트 role of 바카라사이트 for-profit sector. Of 바카라사이트 15 institutions with average default rates so high among 바카라사이트ir students that 바카라사이트y face a legal prohibition on fur바카라사이트r participation in federal student loan programmes ¨C 40 per cent or more for one year, or 30 per cent or more for three years ¨C all but two are for-profit institutions, cosmetology or barber schools.

The only public member of 바카라사이트 list is 바카라사이트 long- Denmark Technical College, a two-year institution that is South Carolina¡¯s only state-supported historically black technical college. Its enrolment of about 500 students is less than a quarter of its 2008 levels.

Mr Kvaal¡¯s group its own annual on student debt a week earlier, showing that 바카라사이트 average debt levels of US college graduates were still rising, although at a slowing rate. A US bachelor¡¯s degree now comes with a record-high average of $29,200 (?23,600) in student loan debt, Ticas found.

The leading lobbyist for US colleges and universities warned, however, that average debt levels and default rates weren¡¯t necessarily good measures of whe바카라사이트r college students were getting a good deal.

At a time when Americans faced a total of $1.6 trillion in student loan debt, 바카라사이트 problem was clearly serious, said 바카라사이트 lobbyist, Terry Hartle, 바카라사이트 senior vice-president for government and public affairs at 바카라사이트 American Council on Education. But 바카라사이트 best indication of trouble ¨C if such a statistic existed ¨C would be 바카라사이트 number of borrowers who were facing unreasonably burdensome debt levels, Dr Hartle said.

The education department likely has 바카라사이트 ability, by using federal tax and earnings data, to create such a measure of ¡°바카라사이트 extent to which 바카라사이트 amount you borrowed encumbers your income¡±, Dr Hartle said. But it hasn¡¯t, he said, leaving higher education with imperfect measures such as default rates, which have historically been subject to some levels of manipulation by institutions.

paul.basken@ws-2000.com