The student loan default rate at North Central Missouri College has again dropped nearly 3 ½ percentage points in one year to 15.4%, according to draft figures recently released by the U.S. Department of Education. Although NCMC had more borrowers entering repayment (due to record-high graduation rates in recent years), NCMC also experienced an actual decrease in the percent of dollars that had been defaulted upon. This is positive news for the institution, current students, former students, as well as the Default Prevention Team that leads default prevention efforts.
Although NCMC has one of the lowest tuition rates in the state of Missouri, 81% of their students receive some type of financial aid in order to complete their college degree. The NCMC Financial Aid Office processed nearly $6.1 million of federal aid last year and has focused efforts on educating and improving borrowing habits of students. Due to their efforts, NCMC was selected as a recipient of the Missouri Department of Higher Education Default Prevention Grant. After receiving the grant, a Default Prevention Team was developed, consisting of both Financial Aid staff and Admissions staff, to educate students and promote financially-healthy decision-making. Ashlea Buntin, Associate Director of Financial Aid, indicated “I am thrilled to see NCMC’s cohort default rate on a steady decline. It speaks of the strength and enthusiasm of NCMC’s Default Prevention Team which strives to educate students about budgeting, smart borrowing, avoiding default and the consequences of defaulting on student loans.”
Default rates are calculated as a percentage of former students who have not made payment on their federal student loans. Borrowers are required to start repaying student loans six months after they either graduate, leave school, or drop below half-time enrollment. Default occurs when a borrower has been delinquent for more than 270 days. For more information regarding repayment or financial aid questions, contact the Financial Aid Office at 660-359-3948, ext. 1417.
