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by dsizzle 1654 days ago
I'm surprised private schools have a lower default rate, since they cost more. I suppose people who attend private school come from wealthier families on average?

For reference, those numbers are all higher than the typical mortgage default rate: https://www.statista.com/statistics/205959/us-mortage-delinq...

3 comments

Private non-profit - Harvard Medical School - very low under 1% default

Private for-profit - Joe's No Good Truck Driving School - maybe 25% or even 50% default

With a spectrum in between depending on quality of school and area of study.

The big for profit schools sound like a big name but aren't. Like University of Phoenix.

The sad fact is: the typical American doesn't even do enough research to know if they are going to a private for profit school or a prestigious state school.

They are just happy they 'got into college', nonethewiser that the school they got into is a money trap.

That is not what the data says. The data says that public universities have the lowest. But public and non-profit private are very similar, so the real split is probably between private for-profit (i.e. scams) and everyone else.

https://infogram.com/student-loan-default-rate-by-school-typ...

There are probably plenty of reasons why wealthier families attend prestigious private schools even if tuition were free, perhaps the most conspicuous being the high profile bribery scandals.