Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Education
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 …