You stated nothing about geographical areas, school types or delinquency aging.
Your entire argument has been screen out the people who should not be in school, while ignoring anything else.
And since you asked for some relevant data.
Who’s Most Likely to Default on Student Loans?
By JOSH MITCHELL
Millions of Americans are struggling to repay their student loans. But somewhat counterintuitively, those with the smallest balances are struggling the most.
The Federal Reserve Bank of New York released research Thursday breaking down student-loan defaults based on how much debt a borrower owed upon leaving school. It divided borrowers into six categories, ranging from those who owed less than $5,000 to those who owed more than $100,000.
Defaults were most common among those with the smallest debt burdens and least common among those with the largest. (The New York Fed defines default in this case as a borrower having gone 270 days with no payment, the standard used by federal government, the primary lender in higher education.)
Among those who owed less than $5,000, one in three had defaulted at some point as of Dec. 31, 2014. Those borrowers made up 21% of the entire pool of those with debt.
The Fed researchers show that the higher the debt burden, the lower the default rate. Those with burdens above $100,000 had the lowest rate at 17.6%.
Why is that? One likely explanation, offered by the New York Fed researchers, is that many Americans with small loan balances are dropouts. They may have attended school for a semester or two without getting a degree. They often don’t end up with the decent-paying job that a college education is supposed to bring, and thus lack the income to repay their debt.
Another possibility is that low-balance borrowers attained credentials such as certificates that don’t lead to the kind of jobs and salaries that a bachelor’s degree does.
By contrast, many borrowers with large loan balances are people who graduated from master’s programs and professional schools—doctors, lawyers—who typically end up with generous salaries. (We said typical, not always. There are plenty of struggling lawyers.)
So while they have the biggest debts, they’re getting the actual returns on their investment and thus are in position to repay their loans. They also may be the most likely to enroll in income-based repayment programs, which many academics say disproportionately benefit high earners.
