YSU reports substantially lower default rates on student loans

Youngstown State University is reporting that student loan default rates have dropped by nearly half in the last six years. 

According to administrators, the trend is the result of increased focus on student success, more scholarships and keeping costs low.

"There are several initiatives we have put into place, and we've certainly made tremendous strides," said Elaine Ruse, YSU director of financial aid and scholarships.

In the 2011 fiscal year, the student loan default rate stood at 20.3 percent, but that rate has fallen every year since.

Preliminary results for the 2016 fiscal year, the year for which the latest data is available, show the rate at 11.8 percent, a decrease of nearly nine percentage points.

The University sights one of the main reasons for the decline as the move toward a more selective admissions process, increasing standards for students to be admitted to YSU, who in turn are more likely to be successful in the classroom, graduate on time and obtain employment, allowing them to pay back their loans.

Additionally, YSU reports increasing funding for scholarship programs and reconfiguring scholarship distribution.

Ruse said the university has also worked to keep student costs low with programs like the Penguin Tuition Promise, Penguin Jump Start, Affordable Tuition Advantage program and an expanded "bulk" tuition rate.

YSU  was ranked seventh in a recent list of the nation's 100 most affordable colleges and universities from College Consensus. YSU's annual tuition also remains the lowest among comprehensive public universities across Ohio, coming in around $1,500 under the state average.

Ruse also said the university had put several programs in place as early as student's freshmen year to help educate and counsel them about loans, including information on borrowing responsibly, repayment programs, loan deferment, and forbearance options.