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Recent government data on student loan repayment show that 20% of students from elite business schools are struggling to pay down their student debt. And that average is miles better than the typical business school's, raising questions about what that means for the rest of us.
The report, which is preliminary, also features thousands of other schools with less-than-perfect track records. Like Harvard Business School.
According to the data, 88% of Harvard Business School students over the last four years have paid down at least one dollar on the principal of their federal student loans. The other 12% have taken advantage of debt repayment options like forbearance, income-based repayment or deferment. Some of the students among that 12% probably never graduated. And some likely defaulted.
But that's not the bad news. Harvard is at the very top of the repayment heap, and leaps and bounds above the average school.
Elsewhere, the data were more troubling. The average repayment rate for public colleges and universities clocked in at an estimated 54%. It was 56% for private nonprofit schools and a dismal 36% for the for-profit colleges. Under proposed federal regulations, for-profit schools with student loan repayment rates under 45% would face some restrictions in federal aid, and those with rates under 35% could lose government financial aid altogether.
Biz school grads: Overeducated and underfunded? - Fortune Management
The report, which is preliminary, also features thousands of other schools with less-than-perfect track records. Like Harvard Business School.
According to the data, 88% of Harvard Business School students over the last four years have paid down at least one dollar on the principal of their federal student loans. The other 12% have taken advantage of debt repayment options like forbearance, income-based repayment or deferment. Some of the students among that 12% probably never graduated. And some likely defaulted.
But that's not the bad news. Harvard is at the very top of the repayment heap, and leaps and bounds above the average school.
Elsewhere, the data were more troubling. The average repayment rate for public colleges and universities clocked in at an estimated 54%. It was 56% for private nonprofit schools and a dismal 36% for the for-profit colleges. Under proposed federal regulations, for-profit schools with student loan repayment rates under 45% would face some restrictions in federal aid, and those with rates under 35% could lose government financial aid altogether.
Biz school grads: Overeducated and underfunded? - Fortune Management