Despite strained economic conditions, more than 92 percent of student loan borrowers in Oklahoma are repaying their federal loans according to the Oklahoma Guaranteed Student Loan Program (OGSLP), Oklahoma’s designated guarantor of Federal Family Education Loan (FFEL) Program student loans.
The student loan cohort default rate, developed by the U.S. Department of Education is an indicator of borrower success in the repayment of federal student loans, which, by design are secured with no collateral or demonstrated credit history. According to figures recently released, Oklahoma’s cohort default rate was 7.5 percent in 2007. Although the state’s default rate has increased from 5.9 percent in 2006, default rates in surrounding states have generally increased more.
OGSLP’s successful default prevention program includes a progressive early assistance program designed to educate borrowers about repayment options before entering repayment and a collaborative partnership with an organization highly successful in counseling delinquent borrowers. These efforts are further strengthened by Oklahoma schools who use OGSLP tools to track and contact at-risk borrowers.
A wide selection of print and online resources is also available to further educate students and families about money management and loan repayment.
“These important programs play a vital role in ensuring Oklahomans have the useful and timely student loan information they need to keep their repayments on track,” said Chancellor Glen D. Johnson.
The cohort default rate reflects the percentage of borrowers who default on federal student loans by the end of the federal fiscal year following the year they enter repayment.
“Early assistance, financial literacy and default prevention are important parts of our mission as a FFEL Program guarantor,” said Mary Mowdy, OGSLP executive director. “We work closely with the Oklahoma financial aid community to reduce the cohort default rate by building personal finance skills and emphasizing the importance of loan repayment.”
To learn more about OGSLP’s default prevention efforts, contact Early Assistance at (800) 358-5460.