The Geography of Federal Student Loans

I thought it would be interesting to see how the prevalence of FFELP vs. Direct Lending institutions and loan volume varied across state lines.  I used institutional level 2007-08 academic year data provided through a FOIA request from the Department of Education for this analysis.  To provide a frame of reference, for that time period, 18.8% of total federal loans were direct loans with about 17% of institutions making direct loans. 

Here are the 10 states with the highest percentage of federal loans being direct loans.  For example, in the state of Idaho 61.3% of federal student loans made in the state were made through the direct direct lending program while 23.5% of institutions in the state were making direct loans: 

	Percentage of	Percentage
State	Loan Volume	of Institutions
Idaho	61.3%	23.5%
West Virginia	57.3%	27.5%
Nevada	46.7%	30.4%
Delaware	40.8%	33.3%
Michigan	40.0%	29.3%
Washington	38.7%	16.1%
Maryland	38.7%	29.1%
Massachusetts	38.5%	21.8%
Oregon	36.9%	25.7%
New Jersey	35.5%	30.3%

As for why the percentage of direct loans far exceeds the percentage of institutions that are in the direct lending program,it would appear that large public universities in these states that participate in DL explain this difference. 

As for FFELP, here are fourteen states that had over 95% of their federal student loan volume in FFELP:

	Percentage of	Percentage
State	Loan Volume	of Institutions
Alaska	100.0%	100.0%
Montana	100.0%	100.0%
North Dakota	100.0%	100.0%
Vermont	100.0%	100.0%
Utah	99.8%	95.0%
Hawaii	99.8%	95.0%
South Dakota	99.8%	95.7%
Wyoming	99.2%	90.0%
New Mexico	99.1%	96.0%
Pennsylvania	98.9%	92.5%
Arkansas	98.4%	76.3%
Louisiana	97.0%	72.9%
New Hampshire	96.1%	91.5%
Mississippi	95.3%	90.3%

Comments

[Jonathan Paul]

Thanks a lot for your useful tips . I appreciate it .

http://studentsblog2.blogspot.com/2009/10/know-basics-of-student-loans.html