"President Trump has promised to restore trust and accountability in government. How about auditing the Education Department? During its final days the Obama Administration slipped the news that its College Scorecard repayment rates were inflated, and on closer inspection the mistake doesn't look innocent or innocuous," The Wall Street Journal writes in an editorial.
"In early January the department disclosed that it had discovered a 'coding error' that incorrectly computed College Scorecard repayment rates—that is, the percentage of borrowers who haven’t defaulted and have repaid at least one dollar of their loan principal. The department says the error 'led to the undercounting of some borrowers who had not reduced their loan balances by at least one dollar.'
The department played down the mistake, but the new average three-year repayment rate has declined by 20 percentage points to 46%. This is huge. It means that fewer than half of undergraduate borrowers at the average college are paying down their debt.
Publication Date: 1/23/2017