For-profit colleges are under fire because students often graduate with large amounts of debt and few job opportunities, and because for-profit colleges misrepresent the quality of their programs. Recent Woodstock Institute research shows that for-profit college students often struggle with higher amounts of loans compared to their non-profit and public student counterparts with similar demographic and financial characteristics.
According to the Federal student loan website, loans are considered to be in default after 270 days of no payments, if monthly payments are scheduled. When loans are in default, the Department of Education uses debt collection agencies to collect money from borrowers. Debt collectors often garnish the wages of borrowers in default.