September 18, 2008 :: Oklahoma Student Loan Cohort Default Rate Remains Steady
The Oklahoma Guaranteed Student Loan Program (OGSLP), Oklahoma’s designated guarantor of Federal Family Education Loan (FFEL) Program student loans, reports that the state’s student loan cohort default rate has remained stable, while default rates in surrounding states have increased significantly.
The rate is the U.S. Department of Education’s (USDE) primary indicator of borrower success in the repayment of student loans, and according to figures recently released by USDE, Oklahoma’s cohort default rate held steady at 5.9 percent in 2006, compared to 5.8 percent in 2005. This means that more than 94 percent of student loan borrowers in Oklahoma are repaying their federal loans, which are secured with no collateral or demonstrated credit history.
“We attribute the state’s exceptional loan repayment rate to a broad range of innovative early assistance and financial education programs that support the default prevention efforts of Oklahoma schools and lenders,” said Chancellor Glen D. Johnson. “Programs and services include a selection of print and online resources to educate students and families about loan management, repayment and personal finance, and useful tools for the financial aid community, such as the Default Prevention School Tool that helps educational institutions track and contact at-risk borrowers.”
The cohort default rate reflects the percentage of borrowers who default on federal student loans by the end of the federal fiscal year following the year they enter repayment.
“Outreach to borrowers through our early assistance, financial literacy and default prevention initiatives is an important part of our mission as a FFEL Program guarantor,” said Mary Mowdy, OGSLP executive director. “The FFEL Program community of schools, lenders and guarantors is committed to reducing the cohort default rate through active engagement in programs that build money management skills and emphasize the importance of loan repayment. It’s a winning partnership for Oklahoma students and families.”
To learn more about OGSLP’s outreach and educational programs, call (800) 442-8642 or visit www.ogslp.org.
The Oklahoma Guaranteed Student Loan Program, a division of the Oklahoma State Regents for Higher Education, serves as the designated guarantor for Oklahoma students and postsecondary institutions, insuring lenders against default, bankruptcy, disability or death of student loan borrowers.