Class Level

Students whose last level while enrolled was freshman, sophomore, or junior are more likely to default than seniors or graduates, perhaps because seniors are closer to graduation (a college success variable known to be associated with lower rates of default) than students at lower levels (Thein and Herr 2001).
Student Employment
The influence of working in college lowers default by 7.5 percent for non-White borrowers, but had no influence on White borrowers. However, this study did not study the impact on default of working a small number of hours while enrolled versus a large number of hours (Volkwein et al. 1998).
Exit Counseling
In-person exit counseling is strongly related to default behavior. Borrowers at Texas A&M who receive exit counseling through in-person contact with a counselor have a 1.3 percent default rate, while borrowers who do not receive in-person counseling have an 11.1 percent default rate. However, in-person exit counseling might owe much of its association with default to the fact that nearly everyone who graduates receives in-person exit counseling, but few borrowers who do not graduate receive it (Steiner and Teszler 2003).
However, other studies using large samples and diverse institutions have tended to find few significant effects on default from counseling-related variables (Flint 1997).
In the study of Texas A&M borrowers, it was found that the greater the number of semesters that a borrower spent in a dorm, the lower the default rate. This may indicate greater integration into the institution, which is associated with success, which is in turn associated with loan repayment (Steiner and Teszler 2003).
Borrowers who attended graduate or professional school default at a lower rate than those who have not. While these students incurred more debt and took longer to begin earning money, they were more successful in school and had very good prospects in the labor market. A corollary to this was the number of schools a borrower had attended. If borrowers attend more than one school, they are less likely to default. Generally, it is the more successful students who continue on to graduate school, which usually involves attending more than one school (Woo 2002).

Related Post:

Comments :

0 comments to “Class Level”