{
  "id": 3606504,
  "title": "Data Reveals Colleges Where Graduates Struggle Most to Pay Student Loans",
  "url": "https://urgent.news/2026/08/26/data-reveals-colleges-where-graduates-struggle-most-to-pay-student",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-26T22:03:27.000Z",
  "source": {
    "name": "Newsweek",
    "slug": "newsweek",
    "url": "https://www.newsweek.com/data-reveals-colleges-where-graduates-struggle-most-to-pay-student-loans-12372490"
  },
  "original_language": "en",
  "account": "Investopedia's analysis of federal student aid data reveals that more than 440 U.S. colleges have nonpayment rates for student loans exceeding 40 percent. Many for-profit schools appear prominently on the list of institutions where students struggle the most with repayment. Experts attribute this trend to the increasing difficulty graduates face in managing debt compared to the earnings their education provides. Michael Ryan, a finance expert, notes that the real cost of college is the debt burden rather than the tuition fee. Delinquency on student loans has become a significant concern since federal collections resumed and credit reporting protections ended. Borrowers who fall significantly behind can see their credit scores damaged and may face wage garnishment. The level of nonpayment varies greatly among institutions, indicating that graduates either earn insufficiently to manage their debt or took on loans without expecting the economic benefits. Florida Career College tops the list with a 61% nonpayment rate among its 28,000 borrowers. Alex Beene, a financial literacy instructor, attributes the high nonpayment rates to the expectation that students don't receive the economic benefits they anticipated from their education. Nearly 1,200 colleges have nonpayment rates over 30%, with more than 440 institutions exceeding 40%. The recent push by the Department of Education to resume student loan payments has exacerbated the financial burden for borrowers. For-profit schools, where students tend to borrow more and default on loans at higher rates, are often found at the top of the rankings. Kevin Thompson, CEO of 9i Capital Group, highlights that many colleges now struggling were never accredited initially, leaving students with extensive student loan debt for questionable credentials. The Department of Education's recent changes in payment plans and debt collection further complicate the economic certainty for borrowers, especially with ongoing legal challenges to the student loan system. A Federal Reserve Bank of New York study shows that for-profit institutions lead to higher borrowing levels, increased default risk, and weaker labor-market outcomes for students compared to public school attendees. Thus, these repayment data serve as a measure of a school's long-term value for prospective students, with high nonpayment rates signaling potential difficulties in translating education into financial stability.",
  "summary": "Many of the worst-performing institutions are for-profit schools, according to an Investopedia analysis.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}