Wanted: Default Prevention Specialist Position
Does anyone at your campus have a Position/Staff memebr who's sole responsibility is helping to prevent default on loans? Years ago, I worked at a school who had someone at each campus, and I know that it worked well in keeping the school's default rate low. Does anyone still have something like that and how effective has it been?
Treva,
I have seen many clients with default prevention specialists at each campus. Most schools choose to us a less intimidating name and go with positions such as "Student Advisor" or "Student Success Coach". Having these positions in place at each location gives you the benefit of getting to know and build relationships with the students while they are in school which should help to continue the communications once the student leaves. The goal should be to provide the students both the knowledge to succeed and the comfort of knowing there is someone there for them if they are unsure or need assistance.
Cheryl Kesson
I would like to mention one additional way in which a dedicated staff member or team can increase the effectiveness of your default prevention efforts: expertise in data, planning and analysis.
Many factors contribute to a cohort default rate, and FA personnel may not have the time or resources to complete all of the standard FA duties with a high degree of quality, and successfully manage default prevention as well. A dedicated position allows someone to become an expert on many overlooked aspects of your cohort default rate such as draft challenges and appeals, analysis to identify enrollment reporting issues that affect the CDR, and analysis to compare default rates by program of study and by campus. If someone is empowered to dive into your data and to complete regular review of reports from the servicers and NSLDS, she can help predict which students or programs should receive more robust loan counseling and delinquency prevention efforts; correct inaccuracies in your rates; and assist with ongoing improvements to your default management plan. This is a lot for FA to take on alone, but for some institutions this effort will have a big impact on your default rates.
Kellee Gunderson
Career Services and Financial aid sometime assit each other in gathering information
Lora,
Career Services can be a great help at keeping records up to date, especially once that person has left school. It is important to maintain a good working relationship between all departments. Everyone at the school plays a role in default prevention.
Cheryl Kesson
Definitely! If a college is struggling with a high skip rate, Career Services and FA can help each other come up with new ways to reach students. While Financial Aid may have difficulty locating students who drop out or are already in delinquency, Career Services can create opportunities for students to re-engage with the school. Student loan borrowers uninterested in exit counseling and repayment information may be coaxed into regularly checking a robust social media account or school blog that offers job search advice, resume workshops, and interviews with successful alumni or local employers. Information gathered by Career Services can then be shared with FA to assist with contacting students who would otherwise have been lost.
no but we used to have a 3rd party services that would call all students we are currently switching servicesrs
That is an excellent idea. I aim to discuss that with our director of financial aid to see how we could provide this type of ongoing support. We see the students come back after graduation for career counseling, so why not default prevention counseling? Their good credit is as important as their career steps.
Therese,
Excellent! We would hate for students to lose out on job opportunities because they are dealing with wage garnishment, collection calls, or loss of a professional license. The efforts and goals of a default prevention team and the career services department have more in common than most people realize.
Kellee Gunderson
