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Do High Cohort Default Rates Affect Student Living Allowances And Debt Burdens? An Empirical Analysis, Robert Kelchen
Do High Cohort Default Rates Affect Student Living Allowances And Debt Burdens? An Empirical Analysis, Robert Kelchen
Journal of Student Financial Aid
The federal government holds colleges accountable for their students’ cohort default rates (CDRs), with colleges facing the potential loss of all federal financial aid dollars if their CDRs are too high for three consecutive years. Yet a sizable portion of student borrowing is for non-tuition living expenses—funds that the college does not get to keep. In this paper, I examine whether colleges at risk of federal sanctions due to high CDRs respond by reducing living allowances in an effort to limit borrowing and if student debt burdens decrease after a college receives a high default rate. Using data from public …
Student Loan Default: Do Characteristics Of Four-Year Institutions Contribute To The Puzzle?, Karen L. Webber, Sharon L. Rogers
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 …