Wellness keeps default rate down
For the past several months I've been writing about all the programs conducted by ASA to assist students with repayment and keeping their loans out of default. You have heard about Transitions,, Bright Beginnings and Journeys, all of which prove that the ASA guaranty does make a difference. Well, the fiscal year 2004 official federal Cohort Default Rate (CDR) for guarantors has been released and ASA has achieved a rate of 1.5 percent, as opposed to the national rate of 5.1 Percent.
FFELP guarantor cohort default rates are based on the cohort default statistics released each year by the U.S. Department of Education. The fiscal year 2004 default rate is the percentage of borrowers who began repaying their loans between October 1, 2003 and September 30, 2004, and who defaulted before September 30, 2005.
For this past rate calculation, ASA had 126,173 borrowers in repayment, representing $128,811,489 dollars in repayment. The only agency to have a lower CDR than ASA was the North Carolina agency with only 19,073 borrowers in repayment. Of the seven largest guarantors, who had over 100,000 borrowers in repayment, ASA had the lowest default rate.
Granted, default rates increased nationwide. This is not a good thing. Nationally, the cohort default rate went from 4.5 percent to 5.1 percent, and while still in the historically low range, it is an unsettling trend upward. Yet, ASA was able to keep the upswing to .2 percent, demonstrating that programs which assist students with repayment certainly have beneficial effects over programs which only collect defaulted loans.
Its time to "Think About Tomorrow""
Best, Duane
Posted by Duane Quinn on September 26, 2006 at 10:26 AM EST
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Blog Author
Mike Ryan
Vice President of Borrower Services
Biography
Michael T. Ryan is Vice President of Borrower Services for American Student Assistance, a position he has held since joining ASA in February, 2003. Mr. Ryan heads ASA’s Borrower Services Division, which is responsible for all aspects of the management and delivery of service to borrowers in ASA’s education loan portfolio, including all default prevention and recovery efforts.
In his 20-plus year career in higher education financing, Mr. Ryan has held key management positions at the Massachusetts Educational Financing Authority (MEFA), and Key Education Resources (formerly Knight Tuition Payment Plans). As MEFA’s Associate Director for Programs and Operations, Mr. Ryan facilitated MEFA’s entry as a Federal Family Education Loan Program (FFELP) provider. He also played an instrumental role in the introduction of the U. Fund, (MEFA’s Section 529 College Investing Plan), managed MEFA’s U. Plan (Prepaid Tuition Program), and was responsible for the operation of MEFA’s loan programs.
While at Knight and Key, Mr. Ryan held progressively responsible management positions, from Account Manager to Senior Vice President.
Mr. Ryan is a graduate of Merrimack College.
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