Monday, October 15, 2001

Wilmington, NC – The most recent published data by the U.S. Department of Education in Washington, D.C. show that the University of North Carolina at Wilmington has the lowest student loan default rate of any UNC system institution.

The UNCW Federal Perkins Loan Default Rate was 1.4 percent for the period ending June 30, 2000. The UNCW rate reflects 134 borrowers in the repayment cohort with only 2 in default. Appalachian State University had the second lowest rate at 5.7 percent and Elizabeth City State University had the highest default rate at 50 percent.

“The default rate is an indicator of several factors including overall management of the loan programs, the quality of the academic programs, and the student’s ability to find and secure employment that allows them to sustain repayment,” according to Mark Williams, director of Financial Aid & Veterans Services at UNCW.

UNCW participates in two separate loan programs, the Federal Perkins Loan Program, which provides low-interest loans to financially needy students, and the Federal Stafford Loan, which provides low-interest loans to all students – even those with no financial need. Default rates were also recently released by the U.S. Department of Education for the Stafford Loan Program. UNCW’s default rate in the Stafford Loan Program (2.7 percent) was the third lowest in the UNC System following UNC Chapel Hill (1.6 percent) and North Carolina State University (2.5 percent).

“Like Perkins, the Stafford Default Rate is also an important indicator of the institution’s overall management and quality,” said Williams. “However, with the Stafford Program, schools do not directly collect the loan repayments.” Loan repayments in the Stafford Loan Program are generally handled by third parties like The College Foundation of N.C., Sallie Mae or the William D. Ford Direct Loan contracted servicer.



Williams can be reached at 910/962-3176.