These 20 institutions could be found in violation of a new federal rule on student-loan defaults if it took full effect today instead of in 2014, as planned. The colleges could escape risk by lowering their default rates before then. Colleges in violation can lose eligibility for federal student aid. For-profit institutions appear disproportionately affected by the new rule. Only three colleges named below are not for-profit: Benedict, Jarvis Christian, and Texas Colleges. An institution would violate the rule if for three consecutive years, 30 percent or more of its borrowers defaulted within three years of their scheduled start of repayment, or if the institution's default rate exceeded 40 percent in the most recent three-year period.
| Institution* | Location | Number of borrowers starting repayment in 2007 | Number of borrowers who defaulted within three years | Default rate, 2007 | Default rate, 2006 | Default rate, 2005 |
|---|---|---|---|---|---|---|
| Three years with default rate of 30 percent or more: | ||||||
| Arizona Automotive Institute | Phoenix, Ariz. | 552 | 214 | 39% | 36% | 33% |
| Aviation Institute of Maintenance | Kansas City, Mo. | 124 | 46 | 37% | 47% | 31% |
| Benedict College | Columbia, S.C. | 1,103 | 374 | 34% | 33% | 34% |
| Camelot College | Baton Rouge, La. | 249 | 84 | 34% | 51% | 35% |
| Centura College-Richmond | Richmond, Va. | 345 | 112 | 32% | 33% | 33% |
| College of Office Technology | Chicago, Ill. | 644 | 305 | 47% | 39% | 38% |
| Everest College at San Bernardino | San Bernardino, Calif. | 765 | 284 | 37% | 33% | 32% |
| Everest Institute at Rochester | Rochester, N.Y. | 1,638 | 610 | 37% | 35% | 34% |
| Huntington Junior College | Huntington, W.V. | 483 | 199 | 41% | 38% | 33% |
| Jarvis Christian College | Hawkins, Tex. | 224 | 89 | 40% | 40% | 37% |
| Tesst College of Technology | Baltimore, Md. | 1,098 | 462 | 42% | 42% | 34% |
| Texas College | Tyler, Tex. | 365 | 149 | 41% | 41% | 36% |
| Westwood College-DuPage | Woodridge, Ill. | 885 | 269 | 30% | 31% | 34% |
| WyoTech at Long Beach | Long Beach, Calif. | 2,224 | 719 | 32% | 35% | 31% |
| Default rate of more than 40 percent in most recent year: | ||||||
| Advanced College | South Gate, Calif. | 92 | 37 | 40% | ||
| Angley College | Deland, Fla. | 115 | 51 | 44% | ||
| Centura Institute | Orlando, Fla. | 57 | 23 | 40% | ||
| College America at Flagstaff | Flagstaff, Ariz. | 240 | 111 | 46% | ||
| Lamson College | Tempe, Ariz. | 330 | 145 | 44% | ||
| Lincoln Technical Institute | Philadelphia, Pa. | 544 | 230 | 42% | ||
| Additional colleges have recorded high rates for two consecutive years and so may be at risk of violating the rule if they cannot lower their default rates. | ||||||
| Degree-granting institutions | All postsecondary institutions | |||||
| Number of institutions with a default rate of 30% or more in 2007 and 2006 | 41 | 100 | ||||
| Number that are for-profit | 34 | 93 | ||||
| * Degree-granting institutions only | ||||||
| Note: The federal rule allows for appeals on various grounds, allowing some colleges with high rates to avoid losing eligibility for federal dollars. Colleges with fewer than 30 borrowers in one year are subject to separate provisions under the rule and so are not included in this analysis. | ||||||
| Source: U.S. Education Department data | ||||||
| Chronicle analysis by Jeffrey Brainard | ||||||
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