Miami Regional Campus Default Rates Raise University Average

By Chris Coombs

Miami University journalism student

About 85 percent of Miami University students who default on student loans study at one of the regional campuses. This is due to the high drop out rates at the Hamilton and Middletown campuses, university officials say.

“The regional campuses are more community college based and typically come from a lower income family than what you might typically see coming from Oxford,” Assistant Vice President for Enrollment Management Brent Shock says.

Once a student graduates he or she has six months to start making their payments and then another three before being considered in default.

Of Miami students who use loans, 9.3 percent go into default after graduation. According to the U.S. Department of Education the national default rate for public four-year universities is 5.9 percent. The state of Ohio hoovers around a 7.8 percent default rate.

Shock says that if the Oxford campus student default rate was calculated on its own, without the branch campuses, the university default rate would be less than 3 percent.

Tuition at the main campus of Miami University for in-state students is $25,122 and $41,229 for out of state students. Tuition at regional campuses is $3,909 in-state and $8,873 for out of state, plus fees for books and personal expenses.

Nearly 53 percent of students on all Miami campuses take out loans to cover tuition as well as room and board expenses. Federal data does not separate the branch and main campuses.

Students at Miami University graduate with, on average, $30,015 worth of student debt. This translates to roughly a $300 payment per month over the next ten years of the student’s life, according to the U.S. Department of Education.

Unlike other loans, former students cannot discharge the student loans by declaring bankruptcy.

Students must complete an entrance interview through the U.S. Department of Education before they can borrow money and before Miami will grant them a loan. The course takes parents and prospective students through what taking out a loan means and their responsibilities for paying back that loan.

“Students learn about their eligibility on their award letter,” Shock says. “We list all of their scholarships and grants on the award letter and secondary we list loans, these must be repaid upon graduation.”

Freshmen, sophomores, and juniors now receive statements once a semester reminding them of how much they owe. The program is called “know before you owe” and breaks down the student’s payments in an easy to read platform.

All graduating students are also encouraged to meet with the financial aid department to go over all that they owe before they leave, Shock says.

Photo: College students interested in taking out loans from the federal government must fill out the FAFSA -- Free Application for Federal Student Aid -- every year.