Student loan default rates raise concerns

FRANKFORT, Ky. (AP) - Of the 81 Kentucky schools eligible for federal student loan programs, 35 showed a 3-year default rate that was higher than the national average of 13.8%, according to a published report citing federal data.

The state's worst default rates are found at private, for-profit "career colleges" and several campuses of the Kentucky Community and Technical College System, the Lexington Herald-Leader reports.

For-profit schools tend to cost more than taxpayer-supported community colleges and put students deeper in debt.

Donald and Stacey Lee racked up about $70,000 in federal insured student loans while attending private, for-profit Daymar College's campus in Paducah.

They quit school last year because of day care problems with their son and defaulted on the loans. They find themselves buried in debt.

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