For-Profit College Loan Steering

For-profit college loan steering is the worst student loan practice for its predatory targeting, with 38% of ITT Tech graduates defaulting within three years. That rate is 3.5 times higher than the average for public colleges, as shown in a 2024 study. Institutions like Corinthian Colleges aggressively promoted federal and private loans despite graduation rates below 30%, directly vulnerable populations with misleading job placement promises. This practice is more destructive than #6's Parent PLUS Loans because it leaves borrowers with an average $24,000 debt and few ways to repay on minimum wage incomes, while Parent PLUS at least funds completed degrees.