Comparative Study of AI-Based and Traditional Student Loan Risk Assessment Models in Federal Polytechnic, Bida, Niger State
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
Student loans have become an essential part of financing higher education, but they also come with the risk of non-repayment, which can negatively impact the sustainability of loan programs. Traditional loan risk assessment models rely on credit scores, financial history, and sometimes subjective evaluations. In contrast, AI-based models can analyze a wider range of data, such as academic performance, socio-economic background, and behavioral patterns, to predict loan repayment behavior. This study will compare AI-based loan risk assessment models with traditional methods in assessing the risk of student loan default at Federal Polytechnic, Bida, Niger State.
Statement of the Problem
Traditional loan risk assessment models may not fully capture the complex factors that influence a student's ability to repay loans. AI-based models, on the other hand, can process large datasets and consider multiple variables that may be more predictive of a student’s future loan repayment capability. This study will assess the potential of AI to improve the accuracy and reliability of student loan risk assessments.
Objectives of the Study
1. To compare the accuracy of AI-based loan risk assessment models with traditional methods.
2. To evaluate the efficiency of AI-based models in predicting loan default.
3. To assess the feasibility of implementing AI-based risk assessment models at Federal Polytechnic, Bida.
Research Questions
1. How accurate are AI-based loan risk assessment models in predicting loan repayment behavior compared to traditional models?
2. What are the strengths and weaknesses of AI-based models compared to traditional risk assessment methods?
3. What impact will the adoption of AI-based loan risk assessment have on loan default rates?
Research Hypotheses
1. AI-based loan risk assessment models will outperform traditional models in predicting student loan repayment behavior.
2. The adoption of AI-based risk assessment will lead to a reduction in loan default rates at Federal Polytechnic, Bida.
3. AI-based models will identify risk factors that traditional models fail to recognize.
Significance of the Study
This study will provide valuable insights into how AI can improve student loan risk assessments and inform better decision-making for financial institutions and educational institutions offering student loans. It will also help to reduce loan default rates by improving predictive accuracy.
Scope and Limitations of the Study
The study will focus on the comparison of AI-based and traditional loan risk assessment models for students at Federal Polytechnic, Bida. Limitations include data access and privacy concerns, as well as the challenge of implementing AI models in real-world financial environments.
Definitions of Terms
• AI-Based Loan Risk Assessment: The use of artificial intelligence to analyze multiple factors that affect a student’s ability to repay a loan, providing more accurate predictions of loan default.
• Traditional Loan Risk Assessment: The conventional methods for evaluating loan repayment risk, often relying on financial history and credit scores.
• Loan Default: The failure to repay a loan as agreed, which can negatively impact the borrower’s credit score and the lender's financial health.
Related Project Materials
Effect of Tax Audits on Revenue Generation in Gudu LGA
Background of the Study
Tax audits play a pivotal role in ensuring that taxpayers comply with tax laws, thus contr...
An Investigation of Customer Satisfaction in Islamic Banking Services
Background of the Study
Customer satisfaction is critical for the long-term success of any financial institution, and in Is...
THE ROLE OF FINANCIAL MANAGEMENT IN RISK ASSESSMENT AND MITIGATION
Abstract: THE ROLE OF FINANCIAL MANAGEMENT IN RISK ASSESSMENT AND MITIGATION
This research investigates the role of financial management...
The effect of interactive brand stories on customer experience: A study of a luxury brand in Kaduna.
Background of the study
Interactive brand stories use digital platforms to allow customers to engage actively with a...
An Investigation of the Influence of Culture on Healthcare Practices in Kano State, Nigeria
Background of the Study
Culture plays a pivotal role in shaping healthcare practices by influencing belief...
The Effect of Financial Accounting Practices on the Profitability of Rice Milling Businesses in Birnin Kebbi LGA
Background of the Study
Rice milling is a significant industry in Birnin Kebbi LGA, contributing to local...
EFFECT OF MANUAL LABOUR ON THE ACADEMIC PERFORMANCE OF PRIMARY SCHOOL PUPILS
Abstract
This study was aimed at identifying the effect of manual labour on the academic performance of primary school...
INFLUENCE OF AVAILABILITY AND UTILIZATION OF INSTRUCTIONAL MATERIALS ON ACADEMIC PERFORMANCE OF AGRICULTURAL EDUCATION STUDENTS IN FEDERAL COLLEGES OF EDUCATION
ABSTRACT
The researchwork investigated the influence of availability and utilization of instructional materials on academic performance o...
FEMINIST AESTHETICS IN OLA ROTIMI’S OUR HUSBAND HAS GONE MAD AGAIN AND FEMI OSOFISAN’S MOROUNTODUN
ABSTRACT
Feminism as a concept gained approval the help of some male feminist writers who write for the sake of women li...
AN INVESTIGATION OF THE APPLICATION OF SCIENTOMETRIC INDICATORS IN MEDICAL RESEARCH AT PAMO UNIVERSITY OF MEDICAL SCIENCES, PORT HARCOURT, RIVERS STATE
Background of the Study
Scientometric indicators, such as citation counts, h-index, and impact factors,...
