College loan default rates rise, report says

The number of college students who defaulted on their federal student loans climbed in the fiscal year that ended in September 2008, according to new government data released today.

And once again, those who attend for-profit colleges and universities were the most likely to default.

The grim numbers are no surprise, given that the timeframe roughly aligns with the start of the recession. But they come at a politically charged time, as for-profit colleges fight proposed regulations that would cut off federal aid to some programs if too many students default on loans or don't earn enough after graduation to repay them.

Figures from the U.S. Department of Education show 7 percent of borrowers of federal student loans defaulted within two years of beginning repayment, up from 6.7 percent the previous year and 5.2 percent the year before that.