Are Student Loan Default Rates Linked to Institutional Capacity?

Ishitani, Terry T.; McKitrick, Sean A.

doi:10.55504/0884-9153.1557

Cited by 11 publications

(12 citation statements)

References 46 publications

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“…Borrowers who enrolled in community colleges and for-profit schools were more likely to go into loan delinquency than borrowers from other institutions (Chamberlain, 2019). Ishitani and McKitrick (2016) found that lower CDRs were associated significantly with student retention and degree completion practices. McKinney et al (2021) noted that community college CDRs was lower among college graduates 9% than among non-graduates 27%.…”

Section: Institutional Characteristics and Cohort Default Ratesmentioning

confidence: 92%

“…The results of their studies concluded that institutions with a more significant proportion of Pell Grant recipients, minority borrowers, males, and older students experienced high student loan defaults. Ishitani and McKitrick (2016) investigated CDRs of 479 4-year postsecondary institutions and found that the total institution population did not affect student loan defaults, but students' composition significantly impacted the CDRs. African Americans and Native Americans had high default rates in community colleges, proprietary schools, and four-year institutions (Ishitani & McKitrick, 2016).…”

Section: Institution Characteristicsmentioning

confidence: 99%

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Managing Factors That Correlate to High Cohort Default Rate at Public 2-Year Community Colleges in Michigan

Njoku

2023

JFRM

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Community colleges serve more than a considerable proportion of Americans who could not otherwise attend colleges by providing access to fulfill their educational goals. Many of the students enrolled in the institutions look to the federal government to finance their educational expenses by obtaining federally guaranteed student loans. The borrowers who default on their student loans cut across race, gender, and age, with Blacks and Hispanic American males more likely to default. The research problem addressed in this quantitative correlational study was the high cohort default rates at 26 public 2-year community colleges in Michigan. The high cohort default rates present problems to the institutions' ability to generate revenue to meet educational budgets. The purpose of this quantitative correlational study was to identify variables associated with student loan default in the 26 public 2-year community colleges in Michigan. The study was guided by the conceptual framework of the student-institution fit model, focusing on individual student attributes and institution-level variables that accounted for the willingness to repay behavior. A quantitative methodology with a nonexperimental design was used to address the research questions. Secondary data were extracted from the National Student Loan Data System and the Integrated Postsecondary Education Data System. The results for all the research questions showed that the assumptions of normality, homoscedasticity, and absence of multicollinearity tests were met, and null hypotheses were not rejected. The study's findings showed that institution-level factors did not significantly predict student loan default among borrowers but rather individual characteristics. I recommended future research to explore default patterns among borrowers in public 2-year community colleges after the COVID-19 crisis in terms of federal government policies that could result in a recommendation for practice for institu-How to cite this paper: Njoku, E. O. ( 2023).

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Section: Institutional Characteristics and Cohort Default Ratesmentioning

confidence: 92%

Section: Institution Characteristicsmentioning

confidence: 99%

Managing Factors That Correlate to High Cohort Default Rate at Public 2-Year Community Colleges in Michigan

Njoku

2023

JFRM

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“…Many of the early studies of default document its correlation to such student characteristics as race/ethnicity, Pell Grant eligibility, and standardized test scores (Gross et al, 2009). More recent empirical work also identifies patterns between default and institutional characteristics (e.g., Darolia, 2013; Deming et al, 2012; Hillman, 2014; Ishitani & McKitrick, 2016; Webber & Rogers, 2014). This newer body of research points to the for-profit sector as consistently having the highest default rates; for-profit students have two to three times the odds of default as those attending public institutions (Hillman, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

Like Any Other Trap: The Circuitous Path of Student Loan Repayment

Furquim

Deane²,

McCall³

et al. 2022

AERA Open

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This paper studies the patterns of individuals’ student loan repayment for up to 12 years, tracking borrowers through the formative ages of the early 20s to the late 30s. Using social sequence and cluster analysis to understand these longitudinal repayment histories, we identify five archetypes of loan repayment that describe borrowers’ experiences: persistent defaulters, perpetual payers, rapid full payers, late full payers, and consolidators. We find significant stratification by race/ethnicity, social class, and institutional sector into repayment clusters, with minoritized borrowers and those attending for-profit institutions more likely to experience adverse borrowing outcomes and to experience them for longer.

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“… 3. Ishitani and McKitrick (2016) cite Powell and Rey (2015) and Jokelainen et al (2011) when they define institutional capacity as “an institution’s ability to leverage resources, achieve student success, and adopt strategies to achieve elements of institutional mission specific to an institution’s student population and unique characteristics” (p. 18). …”

mentioning

confidence: 99%

Building Community and Technical College Capacity Through State Funding

DeLoach

Soliz

Mesa

2023

Community College Review

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Objective: This article analyzes the implementation of two state grant programs in Tennessee aimed at improving the quality of in-demand postsecondary career and technical education (CTE) programming at community and technical colleges. We use insights from our findings to propose a conceptual framework for understanding how external funding can reduce institutional capacity constraints in similar contexts. Method: Building off a previous study, we leverage in-depth interview data with 43 participants across Tennessee’s workforce development system to better understand how administrators perceived state grant goals, what processes they used to address institutional capacity constraints, and what challenges they experienced while implementing grant-funded programs. Results: We find strong alignment of perceived grant goals between the state, which developed the program, and the practitioners who implemented it. We find that the implementation strategies employed included purchasing new equipment, investing in facilities, developing work-based learning opportunities, hiring new faculty and staff, and building collaborations with outside stakeholders. Finally, our data suggest that practitioners faced challenges optimizing the use of funds to address capacity constraints. Contributions: Developing and maintaining high quality CTE credential programs is a challenge for community and technical colleges across the United States. We describe how this has been done successfully in Tennessee and use insights from this context to propose a general framework for building capacity in postsecondary CTE.

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Are Student Loan Default Rates Linked to Institutional Capacity?

Cited by 11 publications

References 46 publications

Managing Factors That Correlate to High Cohort Default Rate at Public 2-Year Community Colleges in Michigan

Managing Factors That Correlate to High Cohort Default Rate at Public 2-Year Community Colleges in Michigan

Like Any Other Trap: The Circuitous Path of Student Loan Repayment

Building Community and Technical College Capacity Through State Funding

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