ERIC Number: ED354801
Record Type: Non-Journal
Publication Date: 1991-Apr
Reference Count: N/A
Analysis of Factors Related to Default.
This paper analyzes the factors associated with student loan default in the Guaranteed Student Loan (GSL) program for higher education. The paper provides an overview of the National Postsecondary Student Aid Study (NPSAS) Student Loan Recipient Survey, and, using data from the survey, presents a descriptive analysis of student loan recipients and of default rates, broken down by various demographic, socioeconomic, and educational-level groupings. Also, the paper explores the underlying factors that determine default, using multivariate statistical techniques. Three key results are reported based on the analysis. First, that a borrower's ability to pay is a powerful determinant of default. Second, that the default rates differ significantly by level of educational attainment. Finally, that default rates differ significantly by the characteristics of borrowers. In summarizing these key results, the report finds that: (1) borrowers leaving school with lower incomes, whose monthly GSL payments are higher, and who have more dependents are more likely to default; (2) borrowers who do not complete high school or their postsecondary education programs are more likely to default; and (3) Black and Hispanic borrowers are more likely to default, after controlling for income, education, and other individual characteristics. Contains seven references. (GLR)
Descriptors: Academic Achievement, Comparative Analysis, Credit (Finance), Ethnic Groups, Financial Problems, Higher Education, Individual Characteristics, Loan Default, Loan Repayment, Multivariate Analysis, Paying for College, Postsecondary Education, Socioeconomic Influences, Student Loan Programs
Publication Type: Reports - General
Education Level: N/A
Sponsor: Department of Education, Washington, DC. Office of Planning, Budget, and Evaluation.
Authoring Institution: Mathematica Policy Research, Princeton, NJ.; Mathtech, Inc., Arlington, VA.; Pelavin Associates, Inc., Washington, DC.
Identifiers - Laws, Policies, & Programs: Guaranteed Student Loan Program