U.S. college graduates are learning a valuable lesson in low defaults. According to a recent report done by the U.S. Education Department, students that graduated from college and started their repayment plans for student loans in late 2007 were 52% more likely to default than students from three years earlier.

Since the onslaught of the financial recession, students that are taking that final departure from college life to the real world exploits that await them are starting to find out just how bad the global economy is getting. One reason that this is happening to these students is due to the for-profit schools that tend to pressure students into high debt loans.

43% Default with For-Profit Schools

For-profit schools have only represented around 25% of the students that borrow overall, but they are 43% of the overall defaulters. The report shows that for-profit schools are handing out higher debt loans and the students are finding it very difficult to repay on time.

The for-profit schools show a 3 times higher default rate over the more common four year public universities and community colleges. This means that you may get out of school quicker, but you might find the financial stress of your decision a bit sooner as well.