The amount of student borrowing skyrocketed from $100 billion in 2010 to $867 billion last year — or more than the $704 billion in outstanding U.S. credit card debt, according to the Federal Reserve Bank of New York. Of the 37 million borrowers who have outstanding student loan balances as of third-quarter 2011, 14.4 percent have at least one past-due student loan account. Together, these balances come to $85 billion, or roughly 10 percent of the total outstanding student loan balance.But there is one critical piece of information that the Washington Post left out of the article: Their ownership of Kaplan, Inc.
The Kaplan Higher Education unit had campuses where students defaulted on federal loans at rate of higher than 30 percent, more than three times the rate at private, nonprofit colleges, according to data released by the U.S. Department of Education. The high default rate may even trigger the loss of student aid under federal rules that take effect in 2012. When students default on their debt taxpayers are stuck with the bill and the students have their credit destroyed. Kaplan's marketing campaign targets especially veterans, single mothers and low-income students. According to the U.S. News & World Report, only 33 percent of Kaplan students graduate within six years.I read that Post article twice. Did I miss their reference to Kaplan?