Despite continued economic strain, most Oklahoma student loan borrowers are repaying their federal loans according to the Oklahoma Guaranteed Student Loan Program (OGSLP), an operating division of the Oklahoma State Regents for Higher Education.
The U.S. Department of Education recently released the student loan cohort default rates, an indicator of borrower success in the repayment of federal student loans, which are secured with no collateral or demonstrated credit history. The cohort default rate reflects the percentage of borrowers who default by the end of the federal fiscal year following the year they enter repayment.
Oklahoma’s default rate remained steady, up slightly from 7.5 percent for 2007 to 8.0 for 2008. Default rates in four of six surrounding states exceed Oklahoma’s rate.
“Default prevention and financial literacy are vital aspects of OGSLP’s mission,” said Chancellor Glen D. Johnson. “We work closely with the Oklahoma financial aid community to reduce the cohort default rate by building students’ personal finance skills and emphasizing the importance of loan repayment.”
OGSLP’s successful default prevention program is a direct result of an ongoing emphasis on financial education and repayment counseling designed to inform borrowers about various repayment options. These efforts are further strengthened by Oklahoma schools who use OGSLP tools to track and contact at-risk borrowers.
Oklahoma Money Matters, OGSLP’s financial literacy program, and UCanGo2, OGSLP’s college access initiative, also provide a wide selection of print and online resources and direct services to further educate students and families about money management, college access and loan repayment.
“OGSLP’s various programs play a vital role in ensuring Oklahomans have the information they need to make smart choices about paying for college and repaying student loans,” said Rick Edington, OGSLP executive director.
To learn more about OGSLP’s default prevention efforts, contact the default prevention department at 800.358.5460 or WeCanHelp@ogslp.org.