Archive for the ‘Financial Aid Fraud’ Category

Financial Aid Default

A co-worker told me today that WGU’s student loan default rate had decreased (according to management), so she didn’t see a problem with the way students were allowed to borrow money without making progress – “They must be paying it back”.  So, I went to the Dept of Education to see what they said about WGU’s default rate.  Below is what I found.

This is what I see (sorry, I’m no math genius) – our default rate has declined, but our number of students in default has remained stable.  I’m assuming this is because the number of students in repayment has increased???

How many students do we expect to enter repayment in the next few years?  Especially since enrollment is now about 30,000 (note the enrollment for FY09 was only 13000).  Do we expect about 1,500 students per year to be in default?  Do we expect MORE students to be in default because the fraud now appears to be rampant at the university (I don’t remember it being so bad a few years ago)?

I would appreciate hearing some feedback on this issue.

FY09                       FY08                    FY07

Default Rate  4.9  6  4.4
No. in Default  166  169  90
No. in Repay  3345  2782  2028
Enrollment figures

Percentage Calculation

 13362

25

 11797

23.6

 8735

23.2

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