 |
|
 |
|
|
|
 |
|
"Some college administrators seem so distracted with fund raising, academic infighting, and community initiatives that they set up their emergency communications departments very poorly. Training is poor to nonexistent, secretaries are pressed into service with tremendous responsibilities for running 'notification systems' 24/7 and on weekends because no one else knows how to do it and the administration won’t pay for additional staff. Procedures are seat-of-the-pants and dependent on HIPPO (highest paid person’s opinion), except when something like Virginia Tech happens and there is some sort of scramble to do something different." --Donna
Most Colleges Avoid Risk Management, Report Says
Jill Biden Shines a Global Spotlight on American Community Colleges
Speaking at a Unesco conference in Paris, the vice president’s wife stressed the importance of two-year institutions to the nation’s educational goals.
Connecticut Public Colleges Lose 200 Professors to Early Retirement
Administrators are scrambling to plug holes in their course schedules for fall, with most expecting to do so by hiring more adjuncts or increasing class sizes.
U. of Georgia Paid 2 Fraternities $2.4-Million to Relocate, Contracts Show
The two were among five with houses on property where the university plans to build new academic facilities.
New Allegations in Admissions Controversy at U. of Illinois Suggest Ex-Provost Played a Role
Linda P.B. Katehi, the incoming chancellor of the University of California at Davis, has insisted she knew nothing of the admission of politically connected applicants at Illinois.
Sonoma State U. Foundation May Lose $350,000 on Loan to Former Board Member
The foundation will be forced to issue fewer scholarships in the 2010-11 academic year because of a diminished endowment, a university official said.
College Suspends Student for Working in Gay Pornography | 58
President Obama's Visit to Notre Dame Carries Barely a Hint of Controversy That Preceded It | 58
Drug Sting Nabs 21 Students at U. of Illinois | 57
Faculty Members and Union Protest Staff Layoffs at Temple U. as 'Cruel' | 57
North Dakota Board's Vote Puts 'Fighting Sioux' Mascot on Thinner Ice | 57
Athletics
Community Colleges
Government & Politics
Information Technology
International
Money & Management
Northern Illinois
Research & Books
Short Subjects
Students
The Faculty
Prior days' news: By date | Search
This week's print issue
Back issues: By date | Search
March 8, 2007
Default Rates on Guaranteed Student Loans Likely to Drop This Year, Data Suggest
Default rates for borrowers in the guaranteed-student-loan program are likely to drop this year, preliminary data released last month by the Department of Education suggest.
Last year the default rate for student-loan borrowers inched up slightly, from a record-low 4.5 percent to 5.1 percent. This year the rate is forecast to fall to 4.9 percent, according to draft cohort data on default rates that the department provided to guarantee agencies in February.
The cohort default rate measures the number of student-loan borrowers who default in a fiscal year as a percentage of the total number of borrowers entering repayment in the previous fiscal year.
The drop represents good news for the lending industry, which has been on the defensive with Congress and the White House in recent months. Most recently, President Bush proposed paying for an increase in the maximum Pell Grant by slashing subsidies to lenders for the third time in a year.
The National Council of Higher Education Loan Programs, which represents lenders in the guaranteed-loan program, attributed the drop to intensified default-prevention efforts by colleges and lenders.
Posted on Thursday March 8, 2007 | Permalink |Comments
Previous: San Diego Doesn't Want to Be a Party Town, for Loud Students Anyway
Next: Researchers Like to Use but Not Publish in Open-Access Journals, Survey Finds
Even more impressive, the lifetime default rate of FFELP loans is significantly lower than it is for the Direct Loan program. Low default rates don’t just happen—they require large investments of resources by lenders and guaranty agencies, working closely with schools.
When default rates are low, everyone wins—students, lenders, schools and taxpayers.
— David Starr Mar 8, 10:14 PM #
Look a little closer and you will find that the creation of “deferment” and “forbearance” options for students who would otherwise default is the real reason the percentages have been in single digits for the past few years. It’s fun with numbers, but it’s political suicide to fix it because no administration wants the default rate to “rise” on their watch. Fat City for the lenders, though!
— Y. I. Autta Mar 9, 08:30 AM #
It is important in any discussion of FFELP vs. Direct Loan default rates that FFELP borrowers in default (or in danger of default) are now advised by many lenders to consolidate their FFELP loans into Direct Lending to obtain the Income Contingent Repayment option. This would put a downward pressure on FFELP default rates while putting upward pressure on DL default rates. While the move is good for borrowers who need assistance of ICR to repay their loans, it gives a false read of comparative default rates.
— Eileen O'Leary Mar 9, 11:46 AM #