The Montana Guaranteed Student Loan Program (MGSLP) pleased to announce 24% decrease in Montana’s student loan cohort default rate.

The Montana Guaranteed Student Loan Program (MGSLP) http://www.mgslp.org is pleased to announce a 24% decrease in Montana’s student loan cohort default rate. The rate dropped from 6.8% in 2003 to 5.2% for 2004, the most recent dates for which data is available. The national average cohort default rate is 5.1%. Cohort default rates are calculated annually and are based on the percentage of students who enter repayment and default before the end of the next federal fiscal year.

Over 11 colleges and universities in Montana have decreased their default rates, with MSU-Northern experiencing the largest decrease from 9.2% in 2003 to 6.2% in 2004. Cindy Small, Financial Aid Director for MSU-Northern, is pleased with the drop. “I am happy to see the 6.2% default rate. It is so important to educate students about financing their education and what it means to borrow money.”

MGSLP is committed to a proactive approach, by offering assistance with entrance and exit counseling, providing training to financial aid administrators, and educating students on responsible borrowing habits. MGSLP’s default prevention unit educates student borrowers about their responsibilities and the resources available to assist them in their repayment obligations. “I would have to contribute this year’s success to our agency’s philosophy of building relationships with our borrowers and maintaining a solid partnership with our schools and lenders,” says Corena Benjamin, Default Prevention Manager for MGSLP.
Borrowers needing assistance in repaying their student loans can visit http://www.mgslp.org or call MGSLP at 1-800-537-7508 or contact the holders of their loans to learn about repayment options.

MGSLP, a division in the Office of the Commissioner of Higher Education, is the designated guarantor of Federal Family Education Loans in Montana and additionally guarantees loans on a regional and national level. Located in Helena, Montana, the agency also administers a variety of state, federal, and private grant and scholarship programs. MGSLP also administers the Montana College Savings Plan, as well as both the Montana University System Honor Scholarship and the Governor’s Postsecondary Scholarship Program. MGSLP is committed to providing financial access to students pursuing postsecondary educational goals.

Media Contact: Lyndsay Bruno or Brian Aliperto

Montana Guaranteed Student Loan Program

406-444-0305