Feds turn eye to career college students in effort to collect more student loans
OTTAWA — Federal officials, as part of the government’s latest efforts to crack down on bad debts, are trying to figure out why graduates from private career colleges are more likely to have problems repaying their student loans.
Roughly nine per cent of the almost half-million students who receive federal assistance each year through the Canada Student Loans program go to private schools, including career colleges.
A federal research proposal from last year says these students are at a “higher risk of defaulting on their student loans” and face more problems making payments on time.
The most recent statistical report on the loan program shows default rates for private college graduates were three times higher than for university graduates, even though private college graduates had on average about $5,000 less in debt.