For profit colleges behind student loan crisis

Shadowproof - A new report by the Brookings Institution claims the recent increases in student loan defaults are tied to an increased use of for-profit colleges.Through researching information from the Treasury Department and other sources, Brookings found that “most of the increase in default is because of an upsurge in the number of borrowers attending for-profit schools and, to a lesser-extent, community colleges and other non-selective institutions whose students had historically composed only a small share of student borrowing.”

According to Brookings, what is being called a student loan crisis is concentrated among students that went to for-profit colleges and other alternative schools. Those students, referred to as “non-traditional borrowers” in the report, make up a whopping 70% of all students who left school and began to repay loans in 2011 but were in default by 2013.