Predicting Student Loan Delinquency and Default
Introduction – Motivation (1) Results from LAHS-BC suggested that students might not understand student financial aids adequately. Not all factors were taken into consideration when they borrowed.
Canada Student Loan Program (CSLP) provides a mortgage-style student loan (amortized to a period after study).
The three-year default rate of the 2009-10 consolidation cohort was 9 percent among university graduates and 17 percent among college graduates (HRSDC, 2012).
Serious consequences of a defaulted CSLP loan:
- The loan is returned to CRA for debt collection.
- The loan cannot be discharged in most cases.
- The borrower is disqualified from further CSLP loans.
- Universal access: uniform “risk premium” within a cohort
Project Details
Published: June 2013
Capability: Data Sciences
Policy Area: Adult Learning - Adult Training, Post-Secondary Education - Access and Persistence
Population: Youth - Students
Type: Report
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