New Report Helps Universities Manage Student Loan Defaults

Are Golden Lions at the Sig Ep House to Blame for Student Loan Defaults? Photo by seanosh

The rising cost of both public and private higher education, coupled with the effects of the recent global financial crisis, has begun to drive a significant increase in student loan default rates. These defaults, set against a backdrop of cuts to state education budgets across the nation, have forced colleges and universities to try to conserve already limited resources and eliminate or reshuffle staff, making it more difficult to manage default prevention initiatives internally.

Did you know?

From 2006 – 2009, American families lost $6.4 trillion in home value which had previously been a vital funding source for college education.

Even though the median earnings of college graduates are more than $20,000 higher than those with only a high school diploma, ballooning student debt levels in a slow-to-rebound job environment multiply the risk of defaults.

NCO Group and insideARM.com recently published a new Info Brief on the vast number of financial difficulties that academic institutions must contend with in the current economic environment.

The Brief, entitled Reading, Writing, and the Arithmetic of Student Loan Defaults examines some of the adverse consequences of macroeconomic forces on internal campus resources; statistical information on student loan default rates among public, private, and for-profit schools; and provides a practical list of questions that university administrators might ask themselves to weigh the advantages of ARM industry partner-based solutions.

Best of all, this Info Brief delivers on its name—it’s both educational and concise—offering valuable information in a format that’s easy to digest.

For a free download of Reading, Writing, and the Arithmetic of Student Loan Defaults: The Case for Partner-Based Campus Solutions click here.

Michael Klozotsky is the managing editor of insideARM.com.  He pays his student loan bills every month.