Borrower Attitude

A study of non-federally guaranteed loans extended to law school students in the early 1990s challenges the notion that there are institutional as well as borrower explanations for default. In this study, variables associated with borrower characteristics, such as ethnicity and family income, were entered first into the model followed by institutional variables. The study found that, after taking into account the characteristics a student brought with him or her to postsecondary study, very little predictiveness was added to the model by also taking into account the characteristics and practices of the school the borrower attended. That is to say, this study found default is primarily related to borrower willingness and ability to repay, not to anything the institution is doing (Monteverde 2000).
Quantitative research as well as interviews with students, staff, and faculty indicate that students possess certain characteristics independent from the institution that cause them to default on their loans, including their attitude toward debt and default and dissatisfaction with the institution (Christman 2000).

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