Originally created 11/13/97

Schools: Crackdown on defaults is unfair



Seven Georgia schools, told that their federal student-loan default rates may make them ineligible for future loans, say they have already withdrawn because they're convinced a federal crackdown on defaults has unfairly targeted them.

Page's University of Cosmetology in Augusta once again had one of the highest default rates in Georgia, although the Walton Way school's rate dropped significantly from the last report. Page's default rate for fiscal 1995 was 50 percent, down from 71.4 percent in fiscal year 1994.

The school hasn't participated in the student loan program since 1992, owners Robert and Margaret Page said Wednesday. The students, not the school, got the loan money, but the schools are singled out when the students default, Ms. Page complained.

"It's most embarrassing reading about this in the paper every year," Mr. Page said. "You couldn't drag me close to a student loan form with a tractor."

Other Augusta-area colleges and universities fared better, with only Kerr Business College topping the 25 percent mark with a default rate of 26.7 percent. Medical College of Georgia had a 1.1 percent rate, but University Hospital's Augusta Area Dietetic Internship was lowest in the Augusta area with 0 percent.

Three South Carolina schools had default rates above 25 percent, with the highest at Allen University in Columbia at 29.1 percent.

Benedict College in Columbia had a rate of 27.4 percent, and Voorhees College in Denmark had a figure of 25.3 percent.

Under federal law, a school with a default rate above 25 percent for three consecutive years loses its eligibility for the student loan programs. Fine, officials at most of the state's highest default schools said.

"I have no desire to ever participate in federal student loans again as long as the rules are as they are," said Elmer Smith, president of Interactive Learning Systems of Chamblee, Ga. "My responsibility is to graduate students and get them jobs. I can't control someone's moral values as to how they handle credit obligations."

Mr. Smith's school had default rates of 27 percent in 1995, 28 percent in 1994 and 30 percent in 1993. Four other Georgia schools also topped 25 percent for three consecutive years -- Beauty College of America in Forest Park, Macon Beauty College, Macon Technical Institute and Pro Way Hair School in Jonesboro.

Page's University, Macon Technical Institute and Southeastern Beauty School in Columbus all had 1995 default rates above 40 percent. That's the one-year threshold at which the U.S. Education Department can terminate or restrict a school's eligibility for federal school loan or grant programs.

Overall, Georgia's 147 post-secondary schools had a student loan default rate of 11.7 percent in fiscal 1995, well above the national average of 10.4 percent. Of 43,522 students with 1995 due dates for their first loan payments, 5,079 had defaulted by Oct. 1, 1996.

At major state universities, the default rate ranged from 6.9 percent at Georgia State University to 5.4 percent at the University of Georgia to 4.6 percent at Georgia Tech.

Major South Carolina schools fell below Georgia rates, with the University of South Carolina-Aiken's figure at 3.1 percent and the University of South Carolina in Columbia at 2.3 percent.

Paine College had a 24.1 percent default rate, followed by Augusta Technical Institute with 11.8 percent and Augusta State University with 10.2 percent. Aiken Technical College's rate fell below those numbers at 5.1 percent.

"Of course, the lower the better. But 10.2 is certainly nothing to be concerned about," said Kevin Wellwood, Augusta State's financial aid director. "Nationally, that's a real good number."

Staff Writer Kelly Daniel contributed to this article.

Default rates

South Carolina postsecondary institutions and their federal student loan default rates for fiscal 1995, according to the U.S. Education Department. The default rate is the percentage of loan recipients who defaulted in the first or second year of repayment:

Public and private, four- or fiveyear:

-- Allen University (Columbia) 29.1 (percent)

-- Benedict College (Columbia) 27.4

-- Voorhees College (Denmark) 25.3

-- Morris College (Sumter) 17.3

-- Claflin College (Orangeburg) 14.0

-- South Carolina State University (Orangeburg) 8.5

-- University of South Carolina-Lancaster 8.3

-- Limestone College (Gaffney) 7.3

-- University of South Carolina-Union 6.5

-- University of South Carolina-Salkehatchie (Allendale) 5.9

-- Columbia College 5.7

-- Anderson College 5.1

-- North Greenville College (Tigerville) 5.1

-- Newberry College 4.9

-- Charleston Southern University 4.1

-- Coker College (Hartsville) 4.1

-- Coastal Carolina University (Conway) 3.8

-- The Citadel (Charleston) 3.7

-- Southern Wesleyan University (Central) 3.5

-- University of South Carolina-Spartanburg 3.4

-- University of South Carolina-Aiken 3.1

-- Erskine College (Due West) 2.8

-- University of South Carolina-Beaufort 2.6

-- Francis Marion University (Florence) 2.6

-- Sherman College of Straight Chiropractic (Spartanburg) 2.5

-- University of South Carolina (Columbia) 2.3

-- Lander University (Greenwood) 2.2

-- Winthrop University (Rock Hill) 2.2

-- College of Charleston 2.2

-- Converse College (Spartanburg) 1.6

-- Presbyterian College (Clinton) 1.3

-- Columbia International University 1.1

-- University of South Carolina-Sumter 0.9

-- Wofford College (Spartanburg) 0.8

-- Furman University (Greenville) 0.7

-- Clemson University 0.7

-- Medical University of South Carolina (Charleston) 0.4

-- Lutheran Theological Southern Seminary (Columbia) 0.0

Public and private, three- or twoyear:

-- Academy of Hair Technology (Greenville) 34.4 (percent)

-- Spartanburg Technical College 20.0

-- Denmark Technical College 16.4

-- Central Carolina Technical College (Sumter) 12.4

-- Tri-County Technical College (Pendleton) 10.0

-- York Technical College (Rock Hill) 9.4

-- Calhoun Technical College (Orangeburg) 9.3

-- Technical College of the Lowcountry (Beaufort) 7.7

-- Piedmont Technical College (Greenwood) 7.0

-- Georgetown Technical College (Conway) 6.7

-- Trident Technical College (Charleston) 6.6

-- Greenville Technical College 6.5

-- Aiken Technical College 5.1

-- Midlands Technical College (Columbia) 4.7

-- Spartanburg Methodist College (Spartanburg) 1.8

-- Darlington Technical College (Florence) 1.3

-- Chesterfield Marlboro Technical College (Cheraw) 0.0

-- Conway School of Practical Nursing (Conway) 0.0

For-profit, two- and one-year:

-- Academy of Hair Design (North Charleston) 45.5 (percent)

-- Professional Hair Design Academy (Greenville) 45.0

-- Alpha Beauty School (Greenville) 32.0

-- Forrest Junior College (Anderson) 18.8

-- Charleston Cosmetology Institute 15.1

-- Kenneth Shuler School of Cosmetology and Hair Design (Columbia) 14.3

-- Nielson Electronics Institute (Charleston) 12.2

-- Columbia Junior College 11.9

-- North American Institute of Aviation

of South Carolina (Conway) 7.1

-- Columbia Beauty School (Cayce) 0.0

-- Farah's School of Beauty Culture (Columbia) 0.0

-- Charzanne Beauty College (Greenwood) 0.0

-- Academy of Cosmetology (Moncks Corner) 0.0

-- Kenneth Shuler School of Cosmetology and Hair Design (Orangeburg) 0.0

-- Kenneth Shuler School of Cosmetology and Hair Design (Walterboro) 0.0

-- Advance Beauty College (Spartanburg) 0.0

-- Piedmont College of Hair Design (Spartanburg) 0.0

-- Sumter Beauty College 0.0

Post-secondary institutions in Georgia and their federal student loan default rates for fiscal 1995. The default rate is the percentage of federal student loan recipients at the school who defaulted in the first or second year of repayment:

-- Albany State University, Albany, 5 yr/pub, 21.5.

-- Albany Technical Institute, Albany, 5 yr/pub, 14.3.

-- Darton College, Albany, 2 yr/pub, 10.9.

-- Georgia Southwestern State University, Americus, 5 yr/pub, 10.4.

-- South Georgia Technical Institute, Americus, 1 yr/pub, 7.7.

-- Athens Area Technical Institute, Athens, 2 yr/pub, 0.0.

-- University of Georgia, Athens, 5 yr/pub, 5.4.

-- Advanced Career Training, Atlanta, 600 hr/prop, 13.7.

-- American Intercontinental University (The), Atlanta, 5 yr/prop, 16.7.

-- Atlanta Area Technical School, Atlanta, 2 yr/pub, 20.0.

-- Atlanta College of Art, Atlanta, 4 yr/priv, 15.9.

-- Atlanta Metropolitan College, Atlanta, 2 yr/pub, 16.8.

-- Atlanta School of Massage, Atlanta, 600 hr/prop, 6.1.

-- Bauder College, Atlanta, 2 yr/prop, 15.0.

-- Beulah Heights Bible College, Atlanta, 4 yr/priv, 19.0.

-- Brown College of Court Reporting, Atlanta, 3 yr/prop, 11.1.

-- Capelli Learning Center for Cosmetology, Atlanta, 1 yr/prop, 9.1.

-- Clark Atlanta University, Atlanta, 5 yr/priv, 14.1.

-- Creative Circus (The), Atlanta, 1 yr/prop, 17.1.

-- Emory University, Atlanta, 5 yr/priv, 3.4.

-- Georgia Baptist College of Nursing, Atlanta, 4 yr/priv, 3.0.

-- Georgia Institute of Technology, Atlanta, 5 yr/pub, 4.6.

-- Georgia Medical Institute, Atlanta, 1 yr/prop, 16.7.

-- Georgia State University, Atlanta, 5 yr/pub, 6.9.

-- Grady Memorial Hospital, Atlanta, 2 yr/pub, 4.5.

-- Grady Memorial Hospital Program in Diagnostic Medical Sonograph, Atlanta, 1 yr/pub, 16.7.

-- Grady Memorial Hospital School of Cyotechnology, Atlanta, 1 yr/pub, 0.0.

-- Grady Memorial Hospital School of Radiation Oncology Technology, Atlanta, 1 yr/pub, 0.0.

-- Herzing College of Business & Technology, Atlanta, 2 yr/prop, 17.3.

-- Institute of Paper Science & Technology, Atlanta, 5 yr/priv, 0.0.

-- Interdenominational Theological Center, Atlanta, 5 yr/priv, 12.7.

-- International School of Skin and Nail Care, Atlanta, 1 yr/prop, 24.2.

-- Morehouse College, Atlanta, 4 yr/priv, 15.6.

-- Morehouse School of Medicine, Atlanta, 5 yr/priv, 5.3.

-- Morris Brown College, Atlanta, 4 yr/priv, 19.5.

-- Oglethorpe University, Atlanta, 5 yr/priv, 5.7.

-- Portfolio Center, Atlanta, 1 yr/prop, 2.3.

-- Spelman College, Atlanta, 4 yr/priv, 9.2.

-- The Art Institute of Atlanta, Atlanta, 4 yr/prop, 20.8.

-- Augusta Area Dietetic Internship University Hospital, Augusta, 5 yr/priv, 0.0.

-- Augusta State University, Augusta, 5 yr/pub, 10.2.

-- Augusta Technical Institute, Augusta, 2 yr/pub, 11.8.

-- Kerr Business College, Augusta, 1 yr/prop, 26.7.

-- Medical College of Georgia, Augusta, 5 yr/pub, 1.1.

-- Pages University of Cosmetology, Augusta, 1 yr/prop, 50.0.

-- Paine College, Augusta, 4 yr/priv, 24.1.

-- Bainbridge College, Bainbridge, 2 yr/pub, 26.4.

-- Gordon College, Barnesville, 2 yr/pub, 11.9.

-- Interactive Learning Systems, Bogart, 1 yr/prop, 35.9.

-- Coastal Georgia Community College, Brunswick, 2 yr/pub, 15.6.

-- Carroll Technical Institute, Carrollton, 2 yr/pub, 0.0.

-- State University of West Georgia, Carrollton, 5 yr/pub, 10.7.

-- Interactive Learning Systems, Chamblee, 1 yr/prop, 39.9.

-- North Georgia Technical Institute, Clarkesville, 2 yr/pub, 14.0.

-- DeKalb Technical Institute, Clarkston, 2 yr/pub, 33.3.

-- Truett McConnell College, Cleveland, 2 yr/priv, 11.2.

-- Middle Georgia College, Cochran, 2 yr/pub, 18.6.

-- Columbus State University, Columbus, 5 yr/pub, 10.9.

-- Columbus Technical Institute, Columbus, 2 yr/pub, 27.8.

-- Mable Bailey Fashion College & School of Modeling & Cosmetology, Columbus, 1 yr/prop, 16.7.

-- Southeastern Beauty School, Columbus, 1 yr/prop, 43.8.

-- Artistic Beauty College, Conyers, 1 yr/prop, 27.7.

-- Andrew College, Cuthbert, 2 yr/priv, 14.7.

-- North Georgia & State University, Dahlonega, 5 yr/pub, 2.8.

-- Dalton College, Dalton, 2 yr/pub, 12.5.

-- Dalton Vocational School of Health Occupations, Dalton, 1 yr/pub, 16.7.

-- Agnes Scott College, Decatur, 5 yr/priv, 5.4.

-- Columbia Theological Seminary, Decatur, 5 yr/priv, 0.0.

-- Dekalb College, Decatur, 2 yr/pub, 10.2.

-- Devry Institute of Technology, Decatur, 4 yr/prop, 16.0.

-- Piedmont College, Demorest, 5 yr/priv, 11.6.

-- South Georgia College, Douglas, 2 yr/pub, 19.5.

-- Heart of Georgia Technical Institute, Dublin, 2 yr/pub, 0.0.

-- Atlanta Christian College, East Point, 4 yr/priv, 0.0.

-- East Central Technical Institute, Fitzgerald, 2 yr/pub, 0.0.

-- Arnold/Padrick's University of Cosmetology, Forest Park, 1 yr/prop, 14.3.

-- Beauty College of America, Forest Park, 1 yr/prop, 27.3.

-- Fort Valley State University, Fort Valley, 5 yr/pub, 21.8.

-- Emmanuel College, Franklin Springs, 4 yr/priv, 11.8.

-- Brenau College, Gainesville, 5 yr/priv, 5.0.

-- Griffin Technical Institute, Griffin, 2 yr/pub, 0.0.

-- Pickens Technical Institute, Jasper, 1 yr/pub, 0.0.

-- Kennesaw State University, Kennesaw, 5 yr/pub, 6.4.

-- Lagrange College, LA Grange, 5 yr/priv, 9.3.

-- West Georgia Technical Institute, LA Grange, 2 yr/pub, 19.5.

-- LA Grange Cosmetology School, Lagrange, 1 yr/prop, 0.0.

-- Gwinnett Technical Institute, Lawrenceville, 2 yr/pub, 14.4.

-- Gwinnett College of Business, Lilburn, 1 yr/prop, 8.6.

-- Covenant College, Lookout Mountain, 5 yr/priv, 3.1.

-- Macon Beauty School, Macon, 1 yr/prop, 25.7.

-- Macon College, Macon, 2 yr/pub, 13.0.

-- Macon Technical Institute, Macon, 2 yr/pub, 50.0.

-- Mercer University, Macon, 5 yr/priv, 5.9.

-- Wesleyan College, Macon, 4 yr/priv, 5.0.

-- Chattahoochee Technical Institute, Marietta, 2 yr/pub, 14.9.

-- Life College, Marietta, 5 yr/priv, 4.5.

-- Roffler-Moler Hairstyling College, Marietta, 1 yr/prop, 3.4.

-- Southern Polytechnic State University, Marietta, 5 yr/pub, 7.9.

-- Georgia College & State University, Milledgeville, 5 yr/pub, 8.4.

-- Georgia Military College, Milledgeville, 2 yr/pub, 16.6.

-- Clayton College & State University, Morrow, 4 yr/pub, 13.3.

-- Moultrie Area Technical Institute, Moultrie, 2 yr/pub, 0.0.

-- Berry College, Mount Berry, 5 yr/priv, 2.9.

-- Brewton Parker College, Mount Vernon, 4 yr/priv, 13.0.

-- Pro Way Hair School, Jonesboro, 1 yr/prop, 34.1.

-- Asher School of Business, Norcross, 2 yr/prop, 15.0.

-- Atlanta Institute of Music, Norcross, 1 yr/prop, 0.0.

-- Gainesville Junior College, Oakwood, 2 yr/pub, 7.6.

-- Lanier Technical Institute, Oakwood, 2 yr/pub, 0.0.

-- Oxford College of Emory University, Oxford, 4 yr/priv, 4.4.

-- Walker Technical Institute, Rock Spring, 2 yr/pub, 0.0.

-- Coosa Valley Technical Institute, Rome, 2 yr/pub, 10.0.

-- Floyd Junior College, Rome, 2 yr/pub, 12.5.

-- Shorter College, Rome, 5 yr/priv, 6.3.

-- Armstrong Atlantic State University, Savannah, 5 yr/pub, 11.5.

-- Savannah College of Art & Design, Savannah, 5 yr/priv, 3.5.

-- Savannah State University, Savannah, 5 yr/pub, 23.1.

-- Savannah Technical Institute, Savannah, 2 yr/pub, 0.0.

-- South College, Savannah, 4 yr/prop, 13.6.

-- Georgia Southern University, Statesboro, 5 yr/pub, 9.1.

-- Lacarm School of Cosmetology, Stone Mountain, 1 yr/prop, 0.0.

-- Metropolitan School of Hair Design, Stone Mountain, 5 yr/prop, 25.5.

-- East Georgia College, Swainsboro, 2 yr/pub, 10.5.

-- Swainsboro Technical Institute, Swainsboro, 2 yr/pub, 0.0.

-- Flint River Technical Institute, Thomaston, 2 yr/pub, 21.4.

-- Thomas College, Thomasville, 4 yr/priv, 7.2.

-- Thomas Technical Institute, Thomasville, 2 yr/pub, 0.0.

-- Abraham Baldwin Agricultural College, Tifton, 2 yr/pub, 15.7.

-- Toccoa Falls College, Toccoa Falls, 5 yr/priv, 5.6.

-- Valdosta State College, Valdosta, 5 yr/pub, 14.1.

-- Valdosta Technical Institute, Valdosta, 2 yr/pub, 0.0.

-- Reinhardt College, Waleska, 4 yr/priv, 10.8.

-- International City Beauty College, Warner Robins, 1 yr/prop, 0.0.

-- Okefenokee Technical Institute, Waycross, 2 yr/pub, 15.4.

-- Waycross College, Waycross, 2 yr/pub, 18.2.

-- Young Harris College, Young Harris, 2 yr/priv, 8.5.