Students are borrowing more and graduating less, concludes Degreeless in Debt, an Education Sector analysis. A majority of first-year students now borrow to pay for their education.
Borrowing has grown the most at for-profit institutions, which have the highest dropout rates.
“Many of those who drop out are saddled with high loan payments even as they are more likely to be unemployed and earn less than their degree-holding peers,” writes Mary Nguyen. “When they default, as many do, they experience devastating financial consequences.”