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Default Prevention

Although not required by the Department of Education to have a default prevention plan in place, the Financial Aid Services Office at Valencia College makes significant efforts in the areas of default prevention and debt management. This document, a part of Valencia College's Financial Aid Policies and Procedures, describes these efforts and presents information about the institution's loan program that helps guide these efforts. The Financial Aid Services Office is responsible for implementation of this plan.

 

To understand the default prevention and debt management efforts for loan borrowers, it is helpful to see Valencia College's borrowing population in the context of the institution. Valencia College serves well over 60,000 students annually and processes over 10,000 loan requests per academic year. In the 2015-2016 academic year, Valencia College had 59,813 enrolled students, 9,710 of which received student loans and the average loan was $5,043.42. For the 2015-2016 academic year, Valencia College awarded over $83 million dollars in grant and scholarship aid.

 

The chart below illustrates Valencia's historical rates compared to all two year institutions as well as the state of Florida and the nation's colleges and universities overall. It is important to note that the population of all two year public colleges nationwide includes many schools quite different in size and character to Valencia, and therefore the comparison may not be as useful as comparing our rates to more similar institutions, which will follow.


Valencia College’s 3-year Cohort Default Rate

Cohort Year

Numerator

Denominator

3-year CDR

2006

362

3,026

11.9%

2007

399

2,543

15.6%

2008

381

2,383

15.9%

2009

504

2,672

18.8%

2010

644

3,670

17.5%

2011

1,088

5,346

20.3%

2012

1,347

7,905

17.0%

2013

1,258

 

8,479

 

14.8%

 

 

Each year, Valencia College will evaluate its financial aid packaging policies, taking into account institutional as well as student needs. The focus of this review will be to encourage conservative borrowing by students and to promote scholarships, other gift aid, and federal work/study in lieu of loans, and will tie into the institutional effectiveness plan. The Financial Aid Services Office will examine on an ongoing basis this default prevention plan to assess its effectiveness. As part of this assessment, the Financial Aid team will work closely with its regional USA Funds Account Executive to evaluate plans used by other institutions, review useful web sites, and attend default prevention conferences and workshops to ensure that Valencia College delivers the most effective programs and services to its students.