College Graduates’ Debt Load May Outstrip Ability to Repay

Bloomberg reports:

Students, especially at for-profit universities, are leaving college in the U.S. with a debt load large enough to raise questions about the ability of many to repay loans, a study found.

At for-profit colleges, 53 percent of the degree recipients in 2008 had education-related debt of $30,500 or more, compared with 24 percent at private nonprofit colleges and 12 percent at public schools, the New York-based College Board said in a report released today.

Students graduating in 2008 faced jobs prospects reduced by the financial crisis and subsequent recession, the worst since the 1930s. Whether the students can earn enough to repay their loans is unclear, according to the study.

Great moments in government subsidies.