Credit Loss Shock: How the Loss of Credits Relates to Retention, Persistence, and Swirl among Vertical Transfer Students

In this study, we advance the concept of credit loss shock for vertical transfer students. Using novel administrative data in Texas, we demonstrate that credit loss is inversely related to retention and short-term persistence, but largely unrelated to long-term persistence. This pattern is partially explained by positive associations between credit loss and engaging in subsequent transfers. We separately examine general credit loss and major credit loss and find that MCL is more strongly related to posttransfer retention, persistence, and subsequent transfers. These findings suggest credit loss shock, driven by MCL, may promote institutional swirl without deterring students’ long-term degree attainment.