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Table 47. Federal Family Education Loan (FFEL) program institutional default reduction initiative comparison of cohort default rates: FY89-FY94

This table shows the national borrower cohort default rate* for FY89-FY94 by type of institution. Included in the table are the numbers of schools participating in the FFEL program, the type of institution, the number of borrowers who defaulted, and the number of borrowers who entered repayment.

• Between FY89 and FY94, the national borrower default rate for the FFEL program decreased by 10.7 percentage points (from 21.4 to 10.7 percent).
• Of classified institutions, the default rate for borrowers was lowest for 4-year institutions, both public and private, and foreign institutions. The default rates for these types of institutions ranged from 4.4 to 7.7 percent during FY89-FY94.
• Between FY89 and FY94, the default rate for public and private 2-year institutions ranged from 13.5 to 18.5 percent. The borrower default rate for 2-year institutions exceeded that of 4-year and foreign institutions, but remained considerably less than that reported for proprietary institutions.
• The default rate for proprietary schools peaked in FY90 at 41.2 percent and then decreased each year until it reached 21.1 percent in FY94, one-half of the FY90 default rate.
• The number of borrowers who entered repayment dropped between FY89 and FY93; there were 1.1 million fewer borrowers who entered repayment in FY93 (1.8 million) than there were in FY89 (2.9 million). In FY94, the number of borrowers who entered repayment increased by nearly 40,000 borrowers (from 1.8 to 1.9 million).
• The number of borrowers who defaulted on their loans dropped 67.8 percent between FY89 and FY94 (from 619,229 to 199,233). Moreover, from FY89 to FY94, the number of schools registering defaults decreased 10.9 percent (from 8,906 in FY89 to 7,935 in FY94).
• With the exception of FY91 when the default rate for unclassified institutions was 19.9 percent, the default rate for these institutions was 6.0 percent or less for FY89-FY94.

*/  The borrower cohort default rate is the fraction of borrowers entering repayment in a given fiscal year who default by the end of the following fiscal year.

Table 47. Federal Family Education Loan (FFEL) program institutional default reduction initiative comparison of cohort default rates: FY89-FY94

Graph 47. Federal Family Education Loan (FFEL) program institutional default rates, by type of institution: FY89-FY94

Table 46

Table 48