University Of Arkansas Graduates Are Paying Back Their Loans With A Lower Incidence Of Default Than National Average

FAYETTEVILLE, Ark. - The incidence of University of Arkansas graduates defaulting on their student loans has continued to decrease for the past three years and has been well below the national college loan default rate for at least five years.

Only 4.6 percent of UA graduates’ defaulted on loan repayment in 1998. This is a drop from 6 percent in 1997 and 8.5 percent in 1996. The most recent statistic for the national student loan default average is from 1997 showing at 8.8 percent.

There are a number of variables that factor into loan repayment, said Kattie Wing, UA Office of Scholarships and Financial Aid. "We’ve implemented programs that make the loan process more accessible and flexible, we’re giving tremendous one-on-one attention to our students and we have a good economy. But it really all hinges on sending our students out into the world informed and prepared to launch into successful careers.

"We have among the lowest default rates in the country, certainly in the state, and from all indicators our students are being offered some of the best loan incentives available partly because we have a lower default rate," Wing said.

The University of Arkansas is leading the state when it comes to implementing changes to improve financial aid services to students having implemented the state’s first fully automated financial aid office last fall.

The University was the first school in the state to process loans on the World Wide Web and to conduct entrance and exit counseling via the web. It was also one of only a few schools to implement the Master Promissory Note, enabling students to receive loan funds more efficiently and timely.

"Even though the University of Arkansas’ financial aid office is the first school in the state to be fully automated, the staff continues to provide human contact with the student borrowers," said Ronnie Nichoalds, executive director of the Student Loan Guarantee Foundation of Arkansas, in a recent letter to the University. "As the financial aid world continues to move into a more electronic age, I am impressed by the personal touch still awarded to each individual borrower at the University of Arkansas. Rarely is an institution so able to meet the demands of the advancing world of higher education financing."

"We try to work with each of our students to ensure their loan process works best for them individually. We particularly make a concentrated effort to keep our students with one lender in order to establish a good communicative relationship," Wing said. "We are the only university in the state that communicates with all lenders and guarantors in the nation."

Wing is providing the leadership for these improvements for the University of Arkansas and was recognized last fall for her efforts. She was awarded the national Mapping Your Future 1999 Excellence Award for her contributions to various Mapping Your Future teams as well as being an outstanding volunteer providing assistance to students seeking financial aid.