PREDICTING STUDENT LOAN DEFAULTS

This study estimates some economic, social, and psychological influenc es upon defaults on education loans. A logistic regression model was d eveloped for 1,117 borrowers drawn from a 1987 national survey. Beside s certain precollege traits and high GPAs, I find that postcollege emp loyment congruent with the undergraduate major reduces default, but in stitutional selectivity, sector, and loan counseling do not.