College Decisions: The Worst Educational Investments

College Decisions: The Most Financially Risky Educational Investments of 2026

riskiest-colleges

According to recent data from the Higher Education Research Institute, a significant 82% of incoming students cite financial stability as essential or very important when selecting a college. This focus on financial outcomes is crucial, especially considering that the national student loan default rate has now climbed to 11.3% as of 2026.

In the current labor market, a college education remains a vital investment, often seen as necessary for career success. While the majority of graduates do see a positive return on their educational investments, not all institutions provide the same level of financial security or job placement success. Some colleges present notably higher risks due to high tuition costs, low post-graduate salaries, and poor employment outcomes.

While metrics like median salaries and employment rates are useful indicators of a school’s value, it’s equally important to consider the potential for graduates to struggle with significant debt—an average burden of approximately $150,000 and four years of financial strain.

To highlight these risky educational choices, we’ve compiled a list of four-year programs across the United States that prospective students should approach with caution. If you’re interested in the safest investments for your future, we have that information available as well. Below are the ten most financially risky colleges, along with a comprehensive list at the end of this page:

South College at Asheville — North Carolina
Allen University — South Carolina
Concordia College — Alabama
East-West University — Illinois
Martin University — Indiana
Wiley College — Texas
Broadview University — Utah
Central State University — Ohio
Martin Methodist College — Tennessee
Rust College — Mississippi

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How We Identified the Most Financially Risky College Investments

Viewing a college education as an investment, we assessed several factors for our ranking index: the cost of attendance, the associated risk, and the potential ease of repayment.

Using data from the Integrated Postsecondary Education Data System (IPEDS), we evaluated the cost of each institution. To gauge the risk of student loans, we referenced Department of Education data on school default rates.

Finally, we analyzed CollegeScoreCard data to determine median salaries six years post-graduation, which is a critical period for assessing repayment success. These metrics were assigned values to rank the most financially risky colleges in each state, allowing us to evaluate accordingly.

1. North Carolina

College: South College
City: Asheville, NC
Default Rate: 27.9 percent
This satellite campus of a larger institution in Tennessee exemplifies a troubling combination: a high default rate nearing the loss of Title IV funding, elevated tuition, and low post-graduate salaries. This is concerning, especially given that one of its featured programs is allied health, which typically offers lucrative career paths.

2. South Carolina

College: Allen University
City: Columbia, SC
Default Rate: 28.9 percent
Distinguished from Allen College, which is a solid investment, Allen University reported a mere six percent graduation rate in 2010 and presents one of the lowest salary outcomes on this list.

3. Alabama

College: Concordia College
City: Selma, AL
Default Rate: 31 percent
With one of the lowest salaries on our list, Concordia College’s high default rate poses significant risk to students, especially as maintaining over a 30 percent default rate for three years jeopardizes federal student loan eligibility. Despite receiving accreditation in 1994, concerns about its future persist.

4. Illinois

College: East-West University
City: Chicago, IL
Default Rate: 14.5 percent
In 2013, East-West University had the second lowest average student loan debt per graduate in the country, which raises questions about why its default rate remains above the national average.

5. Indiana

College: Martin University
City: Indianapolis, IN
Default Rate: 21.3 percent
Employing andragogy, Martin University engages adult learners in the educational process, fostering the integration of life and work experiences into academic discussions. However, the effectiveness of this approach is under scrutiny.

6. Texas

College: Wiley College
City: Marshall, TX
Default Rate: 29.2 percent
Despite 96% of students receiving some form of financial aid, Wiley College struggles with a notably high default rate. Interestingly, the school gained attention for its debate team as depicted in the Denzel Washington film The Great Debaters, yet it lacks a comprehensive history program.

7. Utah

College: Broadview University
City: West Jordan, UT
Default Rate: 20 percent
Founded in 1977 and offering bachelor’s degrees since 2005, Broadview University’s accreditor lost its recognition in 2016, raising concerns about the institution’s future viability.

8. Ohio

College: Central State University
City: Wilberforce, OH
Default Rate: 29.5 percent
Despite its vague name, Central State University faces significant challenges, including the lowest average salary on this list at $19,100. Notably, alumna Omarosa from The Apprentice raises questions about the institution’s legacy.

9. Tennessee

College: Martin Methodist College
City: Pulaski, TN
Default Rate: 19.4 percent
With a default rate of 19.4%, Martin Methodist College charges $23,200 in tuition, has a 43% graduation rate, and features a notable former basketball player who won the 2012 Slam Dunk Contest.

10. Mississippi

College: Rust College
City: Holly Springs, MS
Default Rate: 21.3 percent
Rust College presents concerning statistics, with 73% of its students maintaining GPAs below 3.0 and only 57% of freshmen returning for their sophomore year.

Key Takeaways

The Department of Education continues to monitor loan default rates to assess the quality of educational outcomes tied to federal loan programs. Institutions must remain vigilant, as a cohort default rate exceeding 30% for three consecutive years or 40% in a single year can lead to loss of eligibility for federal loan programs.

For today’s college freshmen, a primary concern is that their chosen institution will facilitate career opportunities. However, equally crucial is ensuring that their college experience does not result in insurmountable debt and poor credit. Prospective students should thoroughly research graduation rates and accreditation before making a decision.

Most Financially Risky Colleges in 2026

As a note, the University of Wyoming inevitably ranks on this list by default, as it is the only institution in its state and thus also holds the title of the most financially secure college.

Rank	State	College	Loan Default Rate	6 Year Salary	Tuition
1	NC	South College Asheville	27.90%	21,400	19,425
2	SC	Allen University	28.90%	21,100	13,140
3	AL	Concordia College Alabama	31.00%	19,900	10,320
4	IL	East-West University	14.50%	23,000	20,145
5	IN	Martin University	21.30%	21,200	12,536
6	TX	Wiley College	29.20%	25,500	11,828
7	UT	Broadview University	20.00%	24,700	13,500
8	OH	Central State University	29.50%	19,100	6,246
9	TN	Martin Methodist College	19.40%	28,800	23,200
10	MS	Rust College	21.30%	22,700	9,500
11	OR	Pioneer Pacific College	15.50%	27,400	13,972
12	AR	University of Arkansas at Pine Bluff	25.70%	27,200	9,403
13	ME	University of Maine at Augusta	18.70%	27,300	12,068
14	CA	Charter College	17.70%	28,600	17,336
15	WV	WVU Parkersburg	22.80%	27,300	8,995
16	KS	Central Christian College of Kansas	22.40%	31,600	14,501
17	NM	Northern New Mexico College	24.60%	27,500	8,430
18	OK	Langston University	28.30%	28,400	8,706
19	MN	Globe University	18.70%	29,100	14,040
20	KY	Kentucky State University	17.60%	28,400	12,905
21	MO	Harris-Stowe State University	27.70%	28,200	7,536
22	PA	Cheyney	27.00%	29,500	11,753
23	NY	Globe Institute of Technology	25.60%	28,900	11,120
24	FL	Florida Gateway College	24.10%	28,000	7,423
25	LA	Grambling State University	17.70%	28,400	11,642
26	GA	Bainbridge	18.60%	24,300	6,264
27	SD	National American University	23.40%	36,100	13,647
28	WA	Peninsula College	24.30%	27,500	4,391
29	VT	Saint Joseph	13.60%	34,700	21,900
30	AZ	Arizona College	22.30%	39,100	16,951
31	NJ	Bloomfield College	13.60%	36,100	27,800
32	VA	Virginia University of Lynchburg	35.50%	32,600	7,880
33	MA	Benjamin Franklin Institute of Tech	19.80%	37,900	16,950
34	NV	Western Nevada College	20.90%	28,000	6,127
35	DE	Wesley College	18.80%	41,600	25,052
36	IA	Hamilton Tech	19.90%	35,200	12,165
37	HI	University of Hawaii at Maui	30.00%	29,400	5,502
38	MI	Jackson College	21.60%	28,800	5,976
39	CT	Post University	14.10%	38,600	16,510
40	ID	Lewis-Clark State	12.00%	33,000	12,724
41	CO	Colorado Mountain College	15.00%	28,400	5,948
42	RI	Rhode Island College	6.50%	39,100	14,027
43	NH	Granite State University	14.60%	32,200	7,641
44	MD	Coppin State University	14.50%	35,700	10,108
45	MT	Montana Tech	13.40%	40,600	13,055
46	AK	University of Alaska at Fairbanks	12.00%	36,200	11,488
47	WI	Herzing University	11.70%	42,300	13,090
48	NE	Peru State College	10.30%	34,300	6,816
49	ND	Mayville State University	10.80%	35,600	7,612
50	WY	University of Wyoming	4.20%	40,200	10,262

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Author

David Luther

David Luther was the Content Marketing Editor for the Zippia Advice blog. He developed partnerships with external reporting agencies in addition to generating original research and reporting for the Zippia Career Advice blog. David obtained his BA from UNC Chapel Hill.

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