Federal Student Loan Programs Data Book

Federal Student Loan Programs Data Book - FY 1997-FY 2000
Part IV FFEL Program and FDLP Defaults and Collections	CONTENTS < BACK NEXT >

Table 51.
Federal Family Education Loan (FFEL) program and Federal Direct Loan Program (FDLP) institutional default reduction initiative comparison of cohort default rates: FY 1994-FY 1999

This table shows the national borrower cohort default rate for FY 1994-FY 1999 by type of institution. Included in the table are the numbers of schools participating in the FFEL program and FDLP, the type of institution, the number of borrowers who defaulted, and the number of borrowers who entered repayment.

Between FY 1994 and FY 1999, the national borrower default rate decreased by 5.1 percentage points, from 10.7 percent to 5.6 percent. The largest decrease occurred between FY 1997 and FY 1998 when the default rate dropped nearly 2 percentage points from 8.8 percent to 6.9 percent. This one-year decline can be attributed to, in part, the change in the definition of default from 180 days of delinquency to 270 days of delinquency. Cohort default rates continued to decline another 1.3 percentage points in FY 1999 after this definition change.

Of classified institutions, the default rate for borrowers was lower for 4-year institutions, both public and private, and foreign institutions. The default rate for these types of institutions ranged from 2.2 to 7.1 percent during FY 1994-FY 1999.

The default rate for proprietary schools decreased annually and fell overall from 21.1 percent in FY 1994 to 9.3 percent in FY 1999.

The number of borrowers who entered repayment increased annually from FY 1994 to FY 1998. More than 1.8 million borrowers entered repayment in FY 1994, and 2.3 million borrowers entered repayment in FY 1999.

The number of borrowers who defaulted on their loans dropped 34.3 percent between FY 1994 and FY 1999 (from 199,233 to 130,861). Moreover, from FY 1994 to FY 1999, the number of schools registering defaults decreased 15.5 percent (from 7,935 in FY 1994 to 6,702 in FY 1999).

The default rate for unclassified institutions was 4.0 percent in FY 1994 and decreased annually, reaching 0.3 percent in FY 1999.

To view the following table in an accessible format please go to http://www.ed.gov/finaid/prof/resources/data/fslpdata97-01/table51.xls.
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Institution type and fiscal year	Number of schools	Number of borrowers who defaulted	Number of borrowers who entered repayment	Borrower default rate* (%)
Table 51. - Federal Family Education Loan (FFEL) program and Federal Direct Loan Program (FDLP) institutional default reduction dollars and collections: FY95-FY00
FY94
Public 4-year	676	48,129	707,981	6.8%
Private 4-year	1,551	31,089	489,879	6.3
Public 2-year	1,362	32,388	235,318	13.8
Private 2-year	709	5,947	44,088	13.5
Proprietary	3,236	81,489	385,477	21.1
Foreign	377	147	2,586	5.7
Unclassified	24	44	1,091	4.0
Total	7,935	199,233	1,866,420	10.7
FY95
Public 4-year	682	54,946	772,375	7.1%
Private 4-year	1,575	34,889	508,475	6.9
Public 2-year	1,355	36,944	260,036	14.2
Private 2-year	633	5,504	38,162	14.4
Proprietary	3,010	66,893	335,772	19.9
Foreign	374	136	2,467	5.5
Unclassified	15	34	1,166	2.9
Total	7,644	199,346	1,918,453	10.4
FY96
Public 4-year	679	59,282	847,346	7.0%
Private 4-year	1,591	36,381	553,503	6.6
Public 2-year	1,294	36,691	276,740	13.3
Private 2-year	598	4,514	32,821	13.8
Proprietary	2,922	60,299	330,974	18.2
Foreign	437	155	3,221	4.8
Unclassified	3	16	990	1.6
Total	7,524	197,338	2,045,595	9.6
FY97
Public 4-year	665	62,268	908,013	6.9%
Private 4-year	1,591	33,752	581,066	5.8
Public 2-year	1,267	37,032	292,452	12.7
Private 2-year	535	3,908	32,077	12.2
Proprietary	2,749	51,704	334,796	15.4
Foreign	422	159	3,721	4.3
Unclassified	9	9	1,128	0.8
Total	7,238	188,832	2,153,253	8.8
FY981
Public 4-year	646	53,350	942,087	5.7%
Private 4-year	1,568	26,907	597,361	4.5
Public 2-year	1,217	32,391	303,610	10.7
Private 2-year	479	2,687	29,570	9.1
Proprietary	2,580	37,532	330,356	11.4
Foreign	415	155	4,202	3.7
Unclassified	5	6	1,076	0.6
Total	6,910	153,028	2,208,262	6.9
FY991
Public 4-year	643	45,425	986,840	4.6%
Private 4-year	1,558	23,163	620,798	3.7
Public 2-year	1,185	27,893	316,180	8.8
Private 2-year	436	1,886	25,075	7.5
Proprietary	2,479	32,390	345,417	9.3
Foreign	399	102	4,618	2.2
Unclassified	2	2	605	0.3
Total	6,702	130,861	2,299,533	5.6
* The borrower default rate is the fraction of borrowers entering repayment on certain FFEL program and/or FDLP loans in a given fiscal year who default by the end of the following fiscal year. ¹As a result of the Higher Education Amendments of 1998, effective October 7, 1998, the definition of default changed from 180 days of delinquency to 270 days of delinquency. NOTES: Details may not add to totals due to rounding. Calculations are based on numbers before rounding. SOURCE: U.S. Department of Education, U.S. Secretary of Education, NEWS: National Student Loan Default Rate Press Releases, October 26, 1998, October 2, 2000, and September 19, 2001.

Part IV FFEL Program and FDLP Defaults and Collections	CONTENTS < BACK NEXT >
Federal Student Loan Programs Data Book - FY 1997-FY 2000