Liquidity Looked in the Mirror but Insolvency Stared Back

New data from the U.S. Education Department confirm that view.

In November, the House of Representatives amended legislation to renew the Higher Education Act with a provision that would extend to three years, from the current two, the "cohort default rate," which gauges the proportion of student loan borrowers who default within a certain time period after they leave college.

The change, proposed by Rep. Timothy Bishop (D-N.Y.) and Rep. Raul Grijalva (D-Ariz.), is designed to make the cohort default rate a more realistic assessment of how individual institutions (and lenders) are faring in keeping student borrowers on track to repayment, both to gauge students’ indebtedness and potential failure by colleges in ensuring that their students are getting an affordable and valuable education. read more