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Higher Education

University of Louisville

Journal

Student loan default

Publication Year

Articles 1 - 3 of 3

Full-Text Articles in Education

College Student Debt And Anticipated Repayment Difficulty, Jonathan J. Fox, Suzanne Bartholomae, Jodi C. Letkiewicz, Catherine P. Montalto Aug 2017

College Student Debt And Anticipated Repayment Difficulty, Jonathan J. Fox, Suzanne Bartholomae, Jodi C. Letkiewicz, Catherine P. Montalto

Journal of Student Financial Aid

This study analyzes factors associated with anticipated difficulty with repayment of debt accumulated during college using a basic model of credit risk that includes socialization processes influencing college student financial decisions. The empirical analysis uses data from the 2010 Ohio Student Financial Wellness Study. Results provide evidence of male overconfidence in financial decision making, as males are less likely than females to predict repayment difficulties. Socialization process variables, including financial management practices, financial parenting communication, and expected economic returns from education, are strongly associated with anticipated debt repayment difficulty. Inclusion of these process variables in the model results in loss …


Are Student Loan Default Rates Linked To Institutional Capacity?, Terry T. Ishitani, Sean A. Mckitrick Apr 2016

Are Student Loan Default Rates Linked To Institutional Capacity?, Terry T. Ishitani, Sean A. Mckitrick

Journal of Student Financial Aid

As more undergraduates have taken out loans to attend college, the number of borrowers who fail to repay their student loans has increased. While previous research has focused on students’ likelihood to default, this study employed institutional cohort default rates (CDRs) as an outcome variable. Using Integrated Postsecondary Education Data System, this study investigated the association between institutional effectiveness and CDRs. Coupled with multilevel modeling, the study also observed the effects of state-level factors, such as state appropriation and unemployment, on CDRs. The results showed that institutional characteristics—e.g., proportion of minority students, admission test scores, retention rates, and instructional expenses—are …


Student Loan Default: Do Characteristics Of Four-Year Institutions Contribute To The Puzzle?, Karen L. Webber, Sharon L. Rogers Nov 2014

Student Loan Default: Do Characteristics Of Four-Year Institutions Contribute To The Puzzle?, Karen L. Webber, Sharon L. Rogers

Journal of Student Financial Aid

College student debt and loan default are growing concerns in the United States. For each U.S. institution, the federal government is now reporting a cohort default rate, which is the percent of students who defaulted on their loan, averaged over a three-year period. Previous studies have amply shown that student characteristics are strongly associated with educational debt and one’s ability to repay student loans; however, few studies have deeply examined the relationship between institutional characteristics and student loan default. This study examined characteristics of 1,399 four-year notfor-profit U.S. institutions and found significant differences in the 2010 federal student loan default …