CECU continues to provide you an inside analysis of important – and often hostile – stories about our sector. Today’s publication continues that commitment.
- Public: 9.6%
- Private Nonprofit: 6.6%
- Proprietary: 15.2%
In a recent Forbes article, a contributor wrote, “The default rates at those schools were so high that, even though for-profits accounted for approximately 22% of all borrowers, they accounted for approximately 33% of all defaults.”
First, you should know that no sector has done more since the publication of the three-year cohort default rates to improve their outcomes than our sector. The proprietary sector rate fell from 22.7% to the current rate of 15.2%, a 33% decrease from the 2009 rate.
Second, you should know that 1 out of every 2 borrowers who default is from the public sector.
|FY2016 default rates||Defaulters||Borrowers||Share of borrowers||Share of defaulters|
Finally, we look carefully at our sector’s default rate. If one removes just a few of the largest schools that offer predominately online programs, the sector’s overall default rate further declines three points to less than 12%! In this case, a handful of schools have a considerable impact on the sector’s overall default rate.