ACICS Cohort Default Rate Best Practices Jesse T. Haines Research Coordinator – Area of Institutional Review Policy and Accreditation Systems ACICS Annual Meeting – June 8, 2010

2 Survey Background 348 ACICS member institutions surveyed - main campuses Received responses from 47 institutions (13.5%) ENROLLMENT 3 institutions enrolled less than 100 students 7 institutions enrolled between students 5 institutions enrolled between students 32 institutions enrolled over 500 students

Findings – All Respondents 3 Three-year default rateTwo-year default rate

Findings – All Respondents 4

Findings – All Respondents Default Rate and Local Economy/Community Are there any correlations between the community your institution serves and its default rate? - YES,… BUT 5 50 % Poor local economic conditions 75.9 % Stronger correlation between program offerings and employment opportunities in local market 52.4 % Demographic makeup of students may contribute to lower/higher cohort default rate % Correlation between non-completers (drops/withdrawals) of a program and default rate

Findings – All Respondents Default Prevention Strategies for Dropped Students Immediate contact with student upon withdrawal – provide in-person exit counseling Encourage student to return to institution to complete program Monitor student repayment Utilize correspondence provided by other agencies (AES, FSA, Citibank, etc.) Maintain updated student contact information 6

Findings – All Respondents 7

Cohort Default Rate Findings – All Respondents Best Practices -Top Five Strategies % Entrance counseling about loan obligations 97.9 % Exit counseling about loan obligations 76.6 % Internal default management team 74.5 % Maintain contact with student after graduation and assisting with loan repayment 72.3 % Student orientation explaining student loan obligations

Cohort Default Rate Findings – 0% to 8% CDR Respondents (16 institutions) Best Practices -Top Five Strategies Communication with student about loan obligations and providing one-on-one counseling Counseling students about “over-borrowing” Increased financial literacy Dedicated default management staff (internal and external) Record keeping – track student status in the NSLDS 9

Findings – All Respondents 10

Findings – All Respondents Job placement Best practices at other institutions More techniques to implement financial literacy How to maintain contact with students Retention best practices Impact of using external Default Management Companies 11 Topics for Discussion

What practices work best for your institution(s)? What topics for discussion would you find most beneficial? Think about co-facilitating an ACICS Default Rate workshop. 12

Participating Institutions Thank you! Brown Mackie College-Findlay Findlay OH Delta School of Business Lake Charles LA Pioneer Pacific College Portland OR Institute of Business and Medical Careers Fort Collins CO University of Advancing Technology Tempe AZ Ridley Lowell Business and Technical Institute New London CT South Coast College Orange CA Education Corporation of America, Inc. Birmingham AL Beal College Bangor ME Everest Institute Silvier Spring MD Jones College Jacksonville FL Ohio Valley College of Technology East Liverpool OH Hunter Business School Levitttown NY CA College of Business and Technology Miami FL The Sawyer School Pawtucket RI NewSchool of Architecture and Design San Diego CA Branford Hall Career Institute Windsor CT Metro Business College Cape Girardeau MO 13

Participating Institutions Thank you! South Hills School of Business & Technology State College PA Ridley-Lowell Business Institute Binghamton NY Anonymous Anthem College Phoenix AZ Dover Business College clifton NJ Daymar College Owensboro KY Erie Business Center Erie PA The Sawyer School Pawtucket RI Miller-Motte Technical College Conway SC Miller-Motte College Wilmington NC Community Care College Tulsa OK Newport Business Institute Lower Burrell PA Minnesota School of Business Richfield MN Globe University Woodbury MN Fortis College Orange Park FL The Art Institute of Phoenix Phoenix AZ Miller-Motte Technical College Charleston SC 14

Participating Institutions Thank you! Art Institute California Hollywood North Hollywood CA Kaplan College Merrillville IN Atlantic College Guaynabo PR Stratford University Falls Church VA Angley College Deland FL Kaplan College Panorama City CA Kaplan college Sacramento CA Texas School of Business North Campus Houston TX Stautzenberger College Maumee OH 15

Contact Information Jesse T. Haines Research Coordinator – Area of Institutional Review (202)