Community-College Borrowers Who Default Are Those With the Least Debt

The community-college borrowers most likely to default on their student loans are those with the least amount of debt, according to a new report from the Association of Community College Trustees.

The report, which examines data from all 16 of Iowa’s community colleges, reaches several other conclusions, many of which repeat or support the findings of previous research. Among them:

• Many borrowers who default — just shy of half examined in the report — don’t take any action on their debt.
• Almost 90 percent of the defaulters examined did not earn a credential.
• Better data from the National Student Loan Data System, and the ability of financial-aid administrators to access it, would result in better outcomes.

Roughly 17 percent of students at public, two-year colleges take out loans, the report notes.