“We should be suspicious of colleges with very high graduation rates if they also have very high default rates. A high graduation rate may imply that a college is effective in preparing students for the world after college, but a high default rate may well indicate that a college is not successful in preparing its students for the world. It should be emphasized that there could be other valid explanations for a college with a high default rate, such as location in a geographic area particularly hard hit by the recession, but it does at least raise legitimate questions about the graduation requirements at these colleges.
Graduation rates are largely under the control of colleges, and some colleges have been accused of lowering standards to keep graduation rates high. Since colleges have very little influence on default rates (other than their effectiveness in preparing students), default rates can provide an indication of which colleges (if any) may have lowered its graduation standards.”
- 514 Colleges Have Higher Default Rates Than Graduation Rates (breitbart.com)
- At 265 Colleges, Loan Default More Likely Than Graduation (newser.com)