Thomas A. Flint


Over 1, 000 Stafford borrowers who attended a private two-year college were studied. These borrowers represent students in the fiscal year 1990 government default cohort for the institution. In a small sample taken for a pilot study, withdrawal from college appeared to be a significant indicator of potential default status. However, a logistic regression model applied to the entire cohort shows instead that gender, race, age, high school rank of students and their cumulative grade point average at the college are significantly correlated to default status, and that students' amount of classwork taken at the institution reduces the impact of personal characteristics. It is further shown that student enrollment choices (i.e., by campus or by division), their borrowing characteristics (number of loans and total amount borrowed), and their reasons for leaving college (withdrawal or graduation) are not significantly related to default status when statistically controlling for other variables. Some implications for recruitment and academic policies that can indirectly affect default status are discussed.