Many For-Profits Are 'Managing' Defaults to Mask Problems, Analysis Indicates

3-year default rates on student loans are 5 times as high as 2-year rates at some colleges

Editors’ Note: On April 21, 2011, the U.S. Department of Education announced that it had erred in calculating the draft three-year student-loan default rates released in February, inflating the average three-year rate of nonprofit colleges by 0.9 percentage points and the average rate of for-profit colleges by 2.6 percentage points. As a result, the three-year default-rate figures for colleges cited in this article, and used as the basis for its summary information, have been