Institutional Effectiveness and Cohort Default Rates at Public Institutions: Do Institutions Matter?

• In Event: 66.041 - Insights on Policy Implementation: The State Role in Higher Education Effectiveness and Finance

Abstract

As more students have borrowed funds to attend college, the number of students who failed to repay has increased. Using national datasets, the current study investigated association between institutional cohort default rates (CDRs), and institutional effectiveness and state characteristics. Coupled with multilevel modeling, this study found that institutional characteristics, such as the proportion of minority students, admission test scores, retention rates and instructional expenses were strongly associated with institutional CDRs. The study's findings suggest institutional default rates are mainly a function of students institutions enroll, and assert that future studies should include institutional as well as student factor in order for policy makers and researchers to understand institutional CDRs more comprehensively.

Author

• Terry T. Ishitani, The University of Tennessee - Knoxville