By Alicia Jacobs, Excelsior Life Staff--
National news reports indicate student debt is now a trillion dollars. On average, school loan default rates are increasing, while educational costs continue to rise. Debts impact students. Conversely, student loans impact higher education.
Media focus is often placed on student debt, but a student's ability to repay their student loan does have consequences to an institution and default rates are monitored by the Department of Education (DOE).
On a national level, more students are borrowing more money than ever before to receive a degree,” said Christina Roarke, Excelsior College’s assistant director of financial aid. “Couple that with higher unemployment and other economic hardships and you get a record number of students having greater difficulty repaying their loans.”
The DOE uses the CDR (Cohort Default Rate) in one respect, as a measure of a schools capability and quality. At Excelsior College, 2011- 2 year draft Cohort Default Rate stands at 4.0 percent, well below the national average of approximately 13 percent. For institutions that have a consistently high CDR, there are ramifications.
A college can…
• Lose access to private loan funds.
• Be subject to sanctions if the schools 2yr default rate exceeds the federal cap of 15% or 3yr default rate exceeds the federal cap of 25%.
• Lose eligibility to provide federal financial aid to their students.
A higher cohort default rate for schools creates a domino effect for students and schools, and even impacts the economic health of our country.
“A school’s cohort default rate has far-reaching consequences, and the implications of a “bad” or high default rate can be devastating. Between the current economic environment and the changing federal student aid landscape, the government is looking more closely at the quality of a school’s education, the degrees a school offers, and whether or not they lead to gainful employment,” Roarke explains. “The government wants to be assured that higher education institutions are providing quality education in relevant areas of study, working hard to keep students on track to graduation, and making sure students understand their rights and responsibilities if they are borrowing to pay for this education.”
With this in mind, the DOE along with higher education institutions are working to create awareness of student loan repayment options. Helping students access the tools and resources to avoid the negative consequences of defaulting on student loans is a priority. For example, there is a plan referred to as Income-Based Repayment. It caps monthly student loan payments at 15 percent of their discretionary income.
“The DOE wants us to live up to our mission as an institution of higher education,” said Roarke. “They are beginning to create new and revised measures of program quality and effectiveness.” The result is tougher regulations and harsh consequences for a failure to serve students well.
It is important for an institution to provide students with all the tools they need to be successful in understanding the financial aid process, student loans, and options for repayment. “At Excelsior College we support student success throughout the entire educational process, this not only translates into a low CDR but more importantly, qualified students graduating with affordable, quality degrees,” said Roarke.
Readers note: This is Part 2 of a feature story on student debt. To read Part 1, Excelsior College Students’ Median Debt is Substantially Less Than The National Average, click here.





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Robbin Crabtree, Ph.D., dean of the College of Arts and Sciences at Fairfield University, received the 2013 Distinguished Administrative Woman in Higher Education Award presented today by the Connecticut American Council on Education (ACE) Women's Network. The award is designed to recognize and honor those Connecticut women who have distinguished themselves by providing outstanding leadership to women in their institutions, in their profession, and in society-at-large.
Fairfield University, as part of its Urban Vision Film Series on Cities, presents a screening of "Belly of the Basin," the award-winning post-Katrina documentary filmco-produced by Fairfield University's Roxana Walker-Canton, Assistant Professor of Visual & Performing Arts,at 3 p.m., Sunday, April 14, 2013, in the DiMenna-Nyselius Library Multimedia Room. There will be a discussion and Q&A with filmmaker Roxana Walker-Canton following the screening. Admission is free and open to the public.
Four Fairfield University communication professors will present their most recent research into such diverse topics as the Internet, advertising, Lyme Disease and roller derby at "Talk About Communication: Twenty-five Years of Communication at Fairfield University," a free lecture series held on campus. The public is welcome to the second session in the series, which will be held at 8 p.m. on Thursday, April 4, 2013, in the DiMenna-Nyselius Library.
Paul Maloney, Ed.D., a Fairfield University assistant professor who has been a senior manager at several international corporations, will lead a full-day workshop, "Leadership Styles," on Friday, May 3. The event will run from 9 a.m. to 4:30 p.m. at Fairfield University's Alumni House. The fee is $99.
The Evangel University Marching Band, directed by Dr. Michael Kolstad, debuted at Silver Dollar City on December 1, 2012, before a crowd of 25,000. Photo by Paul K. Logsdon.
Fairfield University continues its celebration of Women's History Month into April with six events. They are sponsored by the University's Program in Women, Gender and Sexuality Studies (WGS).
Ever wonder how Pabst Blue Ribbon became the beer of choice of the hipster set? How about how the U.S. Army morphed into a popular videogame?
The Evangel University Alpha Chi officers are pictured with EU President Robert H. Spence at the Fall 2012 induction ceremony. From left: Rintu Thomas, Kayla Jordan, Jonathan Mussetter, Lacey Mussetter, President Spence, Dr. Laynah Rogers, Dr. Dale Scheusner and Sheri Hewes.
Fairfield University alumna Donna Gillotte '00 comes home to the Fairfield University Bookstore, 1499 Post Road, Fairfield, to discuss her new book, "Secret of a Medici Mistress," at 7 p.m. on Tuesday, April 2, 2013. The event is free and open to the public.
Fitchburg Art Museum Director Nick Capasso will discuss contemporary art on Wednesday, April 10, as part of Fitchburg State University’s Humanities Visiting Speaker Series.
A new play that examines “otherness” in America through the immigrant experience – and framed against the backdrop of the polarizing Sacco-Vanzetti trial of the 1920s – will have its world premiere as Fitchburg State University’s spring theater production.
Fitchburg State University will welcome Ambassador Adrian A. Basora – national security strategic and scenario planner, scholar and business leader – to deliver the address at the International and Conflict Studies Keynote Speaker Series at 7:30 p.m. Thursday, April 11, at the Ellis White Lecture Hall in Hammond Hall, 160 Pearl St.
A women-only Chapel service will be held on Monday, March 11, at 7 p.m., in the Barnett Recital Hall. Edmonds will be the speaker for this event.
“This is an amazing event for the girls on this campus. It is an opportunity for us to come together and have a night away from school assignments,” Edmonds says. “We feel empowered and inspired by the potential we
Fairfield University will host a free screening of the film "A Question of Habit," a lively look at contemporary depictions of nuns, followed by a Q&A with director Bren Ortega Murphy at 7:30 p.m. on Monday, April 8. The event, which is free and open to the public, will take place in the University's DiMenna-Nyselius Library multimedia room. Light refreshments will be provided.





