To the extent there is a college debt crisis, “it is concentrated among borrowers from for-profit schools and, to a lesser extent, two-year institutions,” concludes a Brookings paper.
Why? Students who choose for-profit colleges and community colleges disproportionately are less-prepared students from lower-income families. The weakest students gain the smallest benefit from enrolling in college. Even a small loan is hard to repay.
“Colleges with lower standards offer a way to get a degree without being very bright, writes FuturePundit. It’s not surprising that “students who to go the low IQ colleges default at much higher rates.”
He adds: “Kids who aren’t too bright are being economically harmed by delaying work to go to colleges where they won’t learn anything useful.”