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The Characteristics Associated with Student - page 63 / 94





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Total Work Study Aid

The total amount of work study aid does not have a statistically significant relationship to default. The study data base shows that only about 5 percent of borrowers receive work study aid.


Total Work Study Aid



$0 More than $0 All Undergraduates

N 11,535

641 12,176

% of row

95.3 95.5 95.3

N 570

30 600

% of row

4.7 4.5 4.7

Total 12,105 671 12,776

Loan Briefing Variables

Loan briefing variables represent a couple of important financial aid office interactions with borrowers regarding the borrowers’ loans. Both of the variables in the summary table below have significant relationships to default and suggest that that the interactions with borrowers have some positive impact on loan repayment. The Exit Counseling variable, in particular, has a relatively high strength of association to default. Perhaps not surprisingly, the Debt Counseling variable has a weak relationship to default. This weakness derives from the fact that nearly all defaulters and repayers go through the counseling; therefore, in predicting whether or not a person will default, knowing that a person received debt counseling is hardly more helpful than knowing that he or she borrowed in the first place.

Variable Exit Counseling (In-person) Debt Counseling

Statistical Significance

Uncertainty Coefficient

Cramer s V

Gamma 0.81 -0.62

Spearman Correlation

Significant Significant

0.13 0.00

0.22 0.05

0.22 -0.05

Statistical Summary: Loan Briefing Variables

Exit Counseling (In-person)

Whereas borrowers who receive in-person exit counseling have a very low default rate (1.3 percent), those who do not receive in-person exit counseling default at a high rate (11.1 percent). In terms of strength of association with default, the exit counseling variable is the only one of the top eight variables that is not from the College Success section. However, the exit counseling variable largely reflects the relationship between graduation and default. In fact, virtually everyone who received in-person exit counseling had graduated. This makes it difficult to sort out the separate effects of counseling and graduation. Nevertheless, it does appear that in-person exit counseling has an association with default that is independent of graduation status: among graduated borrowers, the default rate is almost four times as high for borrowers who did not receive in-person exit counseling (4.4 percent) as it is for graduated borrowers who did receive the counseling (1.2 percent).


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