STUDENT LOAN DEFAULT RATES

Provincial Goal (Ministry of Training, Colleges and Universities 1999/00 Business Plan):

• To reduce the default rate on student loans from the Ontario Student Assistance Program (OSAP) from the current level to less than 10% within 5 years (by 2002/03).

Note: (The Ministry of Training, Colleges and Universities has identified OSAP loan default rates by program as one of three sets of province-wide performance indicators that all post-secondary institutions are obliged to make available to potential students starting in 1999. It should be noted that, while Carleton University administers the OSAP program for Carleton students as an agent of the government, it has no direct influence, or control over, default rates.)

Commentary:

• After falling for three years in a row, from 20.8% in 1997 to 11.0% in 1999, the Carleton student loan default rate rose marginally to 11.6%. Across the province, the rate dropped from 8.4% to 7.1%.
• Carleton's overall OSAP loan default rate remains higher than the provincial average for all universities, but is still lower than the overall average for all post-secondary institutions (15.7%)
• Carleton's program mix is an important factor in determining overall OSAP default rates. There is a wide disparity in rates across programs and Carleton conforms to the provincial pattern. There appears to be a strong correlation between default rates and employment patterns across degree programs.