Student Loan Default Rates

Miller College uses the U.S. Department of Education’s Default Prevention and Management Plan, under the Code of Federal Regulations, 34 CFR 668.14(b)(15), because the college participates in the William D. Ford Federal Direct Loan (Direct Loan) Program.  This plan was adopted at the time when Miller College began participating in the Federal Student Aid Programs in the 2006-2007 academic year. It is designed to assist schools by providing activities, techniques, and tools to promote student and school success and to reduce student loan defaults.

The cohort default rate for Miller College was 0% for the fiscal years 2006 and 2007.  In FY 2008, the default rate was 7.3% (which was 3 out of 41 students who were in repayment at that time) and for FY 2009, the cohort default rate was 12.5% (which was 6 out of 48 students who were in repayment during that period).  FY 2010 cohort default rate was 5.8%.  Although Miller College never has a large number of defaulters at any given time, the percentage looks higher because of the small population of borrowers who are in repayment for the period that is being evaluated at the time.

The Default Prevention and Management Plan consists of several activities, including Entrance Counseling, Communication Across Campus, Exit Counseling, Timely & Accurate Enrollment Reporting, and Late Stage Delinquency Assistance. The Dean of Student Services/Financial Aid has attended the annual Default Aversion Symposium sponsored by the Michigan Guaranty Agency (MGA) and the Michigan Financial Aid Association (MSFAA).