In 2008, a federal study was conducted to calculate and evaluate the factors that contribute to student loan defaults. Results showed that over four years, default rates increased by 6 percent among student groups (Choy and Li, 2006 cited in Gross et al, 2009) and by 60 percent among certain types of institutions. (Lederman, 2008 cited in Gross et al, 2009). 2009) These statistics have prompted regulations to take control and determine the factors that contribute to high delinquencies, making the importance of credit scoring models for student loans all the more crucial. The banking system should improve its credit rating models to reflect past defaults