As hypothesized, borrowers with interruptions to the progress of their academic studies have higher default rates than other borrowers. As the table below indicates, student borrowers with withdrawal dates on their records had more than double the default rate of borrowers who did not have withdrawal dates. The relationship between Withdrawal Indicator and default is highly significant.
Accepted by Academics Missing Accepted by Review Other Accepted on Provisional All Undergraduates
No Yes All Undergraduates
% of row
Type of Admission
Borrowers who are readmitted to the university have a much higher default rate than other borrowers– in fact, their default rate is twice as high as transfer students. Even among borrowers who successfully graduated from TAMU, readmitted borrowers still have a much higher default rate than other borrowers. It will take further research to understand why this result occurs.
Borrowers who transferred from other colleges have a lower default rate than borrowers who were admitted as freshmen, but the difference does not turn out to be statistically significant.