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Below are the schools that had the highest federal student loan cohort default rate in 2015, according to the most recent numbers from the Department of Education (DoE).
| School | Default rate | Number of defaults |
|---|---|---|
| Champ’s Barber School | 57.6% | 34 |
| Family of Faith Christian University | 50% | 7 |
| Larry’s Barber College | 50% | 23 |
| Tomorrow’s Image Barber & Beauty Academy of Virginia | 48.3% | 15 |
| Cheryl Fell’s School of Business | 47% | 24 |
| Theological University of the Caribbean | 45.4% | 15 |
| Sharp Edgez Barber Institute | 45.2% | 33 |
| United Tribes Technical College | 41.7% | 56 |
| Advance Beauty Techs Academy | 40.4% | 19 |
| Centro De Estudios Universitarios Xochicalco | 39.5% | 36 |
| Nashville Barber and Style Academy | 39.4% | 15 |
| Ambiance Beauty & Barber Academy | 38.9% | 23 |
| Alaska Christian College | 38.8% | 14 |
| The Paul Mitchell School — Roanoke, VA | 37.8% | 14 |
| Rob Roy Academy — New Bedford, MA | 37.8% | 28 |
Source: Department of Education
The DoE’s cohort rate is the number of students who go into repayment on federal loans and default within a year. The rate of default from all graduates — including private student loans — is likely higher across the board.
The rate of default doesn’t necessarily mean a lot of students default — only seven students defaulted at the school with the second-highest rate. Below are the schools that had the highest number of defaults in 2015, according to the same DoE data.
| School | Number of defaults | Default rate |
|---|---|---|
| University of Phoenix | 17,127 | 12.3% |
| Altierus Career College — Tampa, FL | 7,888 | 28.4% |
| Ashford University | 5,436 | 13.5% |
| Ivy Tech Community College of Indiana | 5,209 | 18.9% |
| American Public University System | 5,177 | 23.8% |
| Purdue University Global | 5,116 | 13.7% |
| DeVry University | 4,118 | 11.2% |
| Ross Medical Education Center — Brighton, MI | 3,871 | 23.1% |
| The Art Institute of Phoenix | 3,653 | 23.2% |
| Platt College — Tulsa, OK | 3,391 | 20.6% |
| Colorado Technical University | 3,248 | 19.6% |
| Argosy University | 3,079 | 15.5% |
| Liberty University | 3,061 | 9.2% |
| Virginia College | 2,939 | 20.4% |
Source: Department of Education
Private schools have a lower default rate than public schools overall: 10.3% of public school students defaulted versus 7.1% of private school borrowers.
However, public schools had a lower rate for programs that ran for less than two years. Some 11.7% of public school students in these short programs defaulted versus 22% at private schools.
If you’re worried about becoming one of these statistics, there are steps you can take to minimize that risk:
Lenders consider your loan to be delinquent as soon as you miss that first repayment. It can hurt your credit, but it’s not nearly as bad as a default. There are several steps you might be able to take to avoid defaulting when you’re behind on payments:
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You have a handful of options when you’ve defaulted on your student loans. Federal loan borrowers can get out of default by signing up for rehabilitation or consolidating with a Direct Consolidation Loan.
With private loans, your choices are limited. You might be able to refinance with another lender by bringing on a cosigner. If not, reach out to your servicer to discuss the situation. They might be willing to offer another repayment plan or settle for an upfront payment of a smaller amount.
A school with a high student loan default rate or high number of defaults should set off some alarm bells about the quality of education it offers. But it’s not the only factor you should consider when applying to school. It’s possible for anyone to default if they don’t fit repayments into their budget.
You can find out more about how student loans work by checking out our guide.
How long does it take to default on a student loan?
It depends on the lender. With federal loans, your loan is in default if you miss a repayment by 270 days. With federal loans, your loan might be in default after 60 to 90 days.
What is a student loan default rate?
A loan default rate is the percentage of borrowers who miss loan repayments for an extended period of time. The most common way to measure default rates is to consider the cohort default rate. This is the number of students who begin repayments and default within one year.
What’s the national student loan default rate?
The national student loan default rate was 10.8% in 2015, according to the most recent numbers from the DoE.
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