WASHINGTON -- Nearly 180 institutions across the country with high student-loan default rates may be barred from participation in the Guaranteed Student Loan (GSL) program, the U.S. Department of Education listing said today.
Four Maryland schools were among the 178 post-secondary institutions -- most of which are business colleges, beauty academies or other trade schools -- found to have loan-default rates of 30 percent or higher. Schools with high default rates involving fewer than 30 borrowers will not face disciplinary action.
Topping the list for Maryland was the Ron Thomas School of Cosmetology in the 5600 block of Bowleys Lane in northeast Baltimore, which had a 59 percent default rate in fiscal 1989. The school also showed default rates of 57 percent and 47 percent in the previous fiscal years.