When choosing a university to attend, people should think carefully before picking a for-profit college when they’re looking to earn a degree or complete a training program. This is because for-profit colleges have a high rate of students defaulting on student loans.
The Tucson Citizen reports that the three-year default rate on student loans at for-profit colleges is at 25 percent. This is more than twice the default rate at public colleges, which has an 11 percent default rate, and three times as high as the private non-profit default rate of eight percent. University of Phoenix students reportedly have the largest default rate on student loans.