Profiling Student Loan Deferment

Project Details




Carlos E. Canales, April Humber, Irakli Nadareishvilli, Khalid Hasan, Soojung Jung





Recent studies have shown that the cost of higher education has been rapidly increasing over the past few decades. In some instances, students seeking financial aid may receive some federal funding; however, federal funded grants and loans may not be enough to cover all academic expenses. Students in need of additional funds often have no choice but to seek private student loans.

Students experiencing unforeseen circumstances such as unemployment or a family death that requires a short academic leave of absence may wish to defer a loan and avoid default. Unfortunately, obtaining a private loan deferment can be quite difficult unless the student is well aware of the key characteristics lending institutions review prior to granting or denying a loan deferment.

The goal of this project is to determine the set of characteristics used by private lending institutions used to assess whether to grant or deny a loan deferment. The understanding of these characteristics is intended to provide valuable insight for a student wishing to increase their likelihood of obtaining a deferment on a private loan.

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