Community College Daily: Why Are Community College Students Defaulting At Such High Rates?
Community college students have traditionally been less likely to take out student loans than their counterparts in other sectors, largely due to lower tuition costs. However, the number of students who attend two-year institutions receiving financial aid has increased – and community colleges now have the the largest two-year cohort default rates (CDR) of any higher education sector. But if community college students still borrow less than their counterparts at four-year institutions, why are they increasingly defaulting at such high rates? And why is borrowing increasing, especially when tuition and fee amounts are relatively low compared to other institutions? NASFAA’s Brittany Hackett penned this article for Community College Journal, the bimonthly magazine of the American Association of Community Colleges.