Edufacts™
July 2006
Odds stacked against college dropouts
A borrower who graduates from college is much more likely to pay back his or her student loans than one who drops out. In fact, a person who completes a four-year degree at a public college or university is nearly five times less likely to default than someone who does not complete his or her degree from the same school.
Every day, students make important decisions that affect their ability to complete a college degree. They weigh some of these choices carefully, such as which college they can afford to attend. Yet they underestimate the impact of many other choices, such as whether to drop a course, take a job off-campus, or participate in extracurricular activities. Many times, a student will make a quick-fix decision that turns into a long-term financial nightmare, which is all the more likely if that decision means dropping out of school.
For tips on how to establish high expectations for students as early as middle school and for assistance in planning for higher education academically and financially, visit www.AIE.org. TG provides this website as a public service to help all families and students achieve their educational and career dreams.
Source: State of Student Aid and Higher Education in Texas 2006
About TG
TG is a public, nonprofit corporation that helps create access to higher education for millions of families and students through its role as an administrator of the Federal Family Education Loan Program (FFELP). As a public service, TG provides Edufacts, a publication containing current information about education issues, on a monthly basis. Edufacts is one of the many ways in which TG promotes awareness of education issues, advising the public on national and state trends in education and student aid, and serving as a premier source of information.
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