Delinquency and Default

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Delinquency and Default

• Deborrah Glenn-Long
• Connecticut Student Loan Foundation

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Definitions

• Default loan that is at least 270 days
  delinquent
• Cohort Default Rate (CDR) Percentage of
  borrowers who enter repayment in a fiscal year
  and default in the same or next fiscal year
• FFEL is included in CDR if the claim has been
  paid by the guarantor

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National Default Rate
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Major Default Factors

• Failure to complete academic program
• Low income
• Family income prior to college
• Unemployment after college
• Most research indicates that campus
  characteristics have little correlation with
  default except as related to borrower
  characteristics

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Other Characteristics

• Ethnicity
• African American
• Hispanic
• Gender Male
• Age Older
• Low grade point average
• Failing at least one class

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January
7
February
8
March
9
April
10
May
11
June
12
July
13
August
14
September
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Prevention

• Provide loan information and counseling
• Focus on student retention
• Ensure that student debt remains reasonable
  relative to career plans
• Enhance entrance and exit counseling
• Continue contact with borrowers