The U.S. Department of Education admits it made a mistake in the way it calculated rates of student loan default. The mistake resulted in an amplification of student default rates by including too many borrowers in the calculation, Californiawatch.org reports.
The article goes on to report that the for-profit college sector continues to have higher default rates than other institutions of higher education, this mistake in calculation notwithstanding. Everest College tops the list as the for-profit college with the highest default rate.
Another offender is the Bridges of Beauty Academy in Barstow, California, where two in every five student loan borrowers defaults on their loans within three years.
The school has since been put on probation by the National Accrediting Commission of Cosmetology Arts & Sciences.
Schools are frequently put on probation by accreditation commissions if they fail to meet certain financial or management standards. Probation could also indicate that a school's completion, licensure, or placement rates have fallen below acceptable levels.
The Association of Private Sector Colleges and Universities has been angered by the erroneous data released by the Department of Education. Their reputations under attack, career colleges feel they have been slighted by the federal government. At least the truth is now out, and the future for career colleges does not appear as bleak as it once did.