NASHVILLE, Tenn. - New information released by the U.S. Department of Education doesn't look promising for college students or student loan lenders in Tennessee. The default rate for some institutions is around 25 percent of their graduating classes.
Shay Patterson majors in criminal justice at Nashville State Community College, She said she knows there is no guarantee to finding a job once your student days are done.
"With me going to Nashville State, it's a community college, it's less expensive but it's still expensive," said Patterson.
Thousands of students have taken out loans and after graduations. Patterson said students know it's time to pay up.
"There is no getting away with Sallie Mae. She is on your back. If you don't pay those loans back, what is going to happen? Your house is taken away and they'll garnish your wages," said Patterson.
According to the Department of Education, during the first two years of payments, 9.1 percent of students defaulted on their federal loans in 2011 – up from 8.8 percent in the previous year.
"When they do get out of college it's no guarantee you get a job or a career. It's hard to get work. You don't just come out of college or graduate and say, 'oh yeah I got a job.'" You have to look and search and if you don't have a job you can't pay your loans back," said Patterson.
Loans are not allowed as a factor in bankruptcy and non-payments can ruin your credit. Students or parents should ask the lender for payment options before going into default.
Here is a list of 25 schools in middle Tennessee and the rate of student loan default.
Martin Methodist College – 26.6%
Miller-Motte Technical College – 25.2%
Daymar Institute (Nashville) – 25.5
Nashville State Community College – 21.8%
Paul Mitchell, The School Nashville – 21%
Kaplan Career Institute – 20.5%
Volunteer State Community College – 19.7%
Fisk University – 18.4%
Nossi College of Art – 17.8%
Austin Peay State University – 16.6%
Bethel University – 16.2%
National College of Business and Technology – 14.7%