Student Loan Comparison

Project by: Matthew Hofbauer

Number of Schools

Public Private Proprietary (For Profit) Foreign Unclassified0

500

1,000

1,500

2,000

2,500

200920102011

An analysis of school types compared to the the amount of schools open, show no dramatic changes except for “For Profit” schools. These have the greatest increase in schools and show the most growth.

Assumption: “For Profit” Schools maybe offering more opportunities for students and growing the fastest.

Borrowers Default Rate

An analysis of Borrowers Default Rate over the span of 3 years, show that “For Profit” and Foreign schools have had a decrease in default rate, with public schools having the most dramatic increase.

Assumption: “For Profit” and Foreign schools can potentially provide more opportunities to help students with loans, also possibly providing better education resulting in more students graduating with jobs, thus resulting in more students paying off loans.

2009 2010 20110.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

PublicPrivateProprietary (For Profit)ForeignUnclassified

Number of Borrowers Defaulting

An analysis of Borrowers Default Rate over the span of 3 years, show that “For Profit” and Public schools have shown the largest increase in defaults, with private having the steadiest. (Relating to amount)

Assumption: Private schools may be the hardest to apply to. They may do rigorous background checks to make sure students will be qualified.

2009 2010 20110

50,000

100,000

150,000

200,000

250,000

PublicPrivateProprietary (For Profit)ForeignUnclassified

Borrowers Entering Repayment

An analysis of Borrowers Default Rate over the span of 3 years, show that Public schools have the greatest increase in borrowers entering repayment.

Assumption: The demand on Public schools can be increasing, or the cost for attending a public school has risen over the last 3 years making students take out more loans.

Public

Private

Proprietary (For Profit)

Foreign

Unclassified

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000

201120102009

Analysis

For profit schools have the greatest increase over the last 3 years.

“For Profit”

Private schools have the slowest changes in default rate, even though there was a small increase.

“Private”

Private schools show the least increase in borrowers that default.

“Private”

Private schools show the least dramatic change in students whom enter repayment.

“Private”

Analysis

Private Colleges

Point Park University could be an opportunity.

University of Pittsburgh would be a bad choice because its been shown that students will have more loans, and a higher chance of

defaulting.

Source: http://www2.ed.gov/offices/OSFAP/defaultmanagement/cdrschooltype2yr.pdfThe cohort default rate is the percentage of borrowers who enter repayment in a fiscal year and default by the end of the next fiscal year.

The Department issues default rates according to the fiscal year that borrowers entered repayment. For example, the fiscal year 2011 default rate is based on students that entered repayment between 10/1/2010 and 9/30/2011. The Department publishes default rates approximately two years after the fiscal year that students enter repayment.

The Department issued the first national default rates for fiscal year 1987 in calendar year 1989. Direct loan data was included for the first time with the fiscal year 1995 rates.

Effective July 1, 2010, schools are no longer eligible to make FFEL Loans.

In accordance with the Default Prevention and Management Initiative, the Department imposed congressionally mandated sanctions for the first time with the release of the fiscal year 1989 rates in calendar year 1991. Nearly 1,200 schools have lost student loan program eligibility since the beginning of the Default Management Initiative.

The fiscal year 2011 rate included 6,047 schools. There has been an increase in the FY 2011 cohort default rate over last year's rate.