For-profit college loan default rates soar

Earlier this month, I warned readers not to enroll -- or encourage their children to enroll -- in for-profit colleges.

New student loan default rates from the U.S. Department Education highlights in more detail why these institutions are such a bad idea. According to a Wall Street Journal analysis of the data (subscription required), 21% of students who use federal loans to attend for-profit college go into default within three years. That compares to 7% at public four-year colleges and 16% at public two-year colleges.