Default Management
What do you think is the most important thing an institution can do to prevent default on student loans? Please share any successful strategies that your school has implemented to assist in default management.
It is so important to get everyone who touches this individual life to get involved in helping in an way. Not only with the funding but in the education process of how important education is and there is a cost and a pay out. They need to honor their commitment and requirements in paying off all loans and to anyone who assised them in getting a higher education. By educating them they will see the value in the end product which will be graduating and a start on a new career choice.
I think students need to know if you do not pay off your student loans, it will affect many other things in your life as well. It will affect credit scores and that can be a hinderance if you look to purchase a new car or home. I think students should take advantage of loan counseling so they can get good advice and a strategic plan on paying off their loans in a timely manner. They also need to know the consequences when they do not pay on their school loans as well.
One issue could be to lower tuition and allow students to have the option of receiving funds to help support what is needed during the students time of need.
Prevent students from entering college courses that do not have any technical knowledge that is needed to do an online course. REQUIRE testing to be able to enroll in an online program
Each Representative should explain the Student Loan process and potential obligation. Answer questions the student has about time required, potential payment obligations and the seriousness of the obligation.
Provide adequate financial aid information to prospective students
I think that an institution should make it mandatory for students to attend seminars and workshops on the subject about student loans.
I feel we need to make sure the student knows what they are getting into before they start and when they get their degree. We have a department that calls our students that are having problems with payments and helps them stay on track.
The most important thing an instituion can do to prevent student loan default is to keep students continuously enrolled and having resources in place to help them complete their program so that they can hopefully get gainfully employed in their chosen career and be able to repay the loan. The re-entry team at our school works hard to bring students back into the fold. Their work is tantamount to improving loan default numbers.
It is so important to educate students about the cost of education and their commitment needed to pay off loans.
Denise,
Very true. Students who drop out are much more likely to default than students who graduate.
John Ware
Mark,
You need to be careful about giving too much specific information about financial aid. Generally, those discussions should take place with the financial aid office in your school.
John Ware
Quinton ,
All students receivimg federal financial aid must receive both enterance and exit couseling about their student loans.
John Ware
I agree that ALL financial aid questions should be addressed with Financial Aid Coordinators. The only financial aid information I provide is that our school is accredited by an agency recognized by the DOE and that eligible students can participate in Federal Financial Aid.
We can make sure the student is commited and in the right program. Making sure they are qualified and meet the minimum standards. Also following up with the student and helping them when they have problems.
I think that the most important thing a school can do is make sure students are prepared when going into the work force and as they get close to graduation by a Financial aid person regarding budget and repayment.
Some strategies may be to increase our career services department and efforts to help our students be gainfully employed so that default loan payments would not be an option.
A healthy relationship with a default prevention representative from the time the loan was procured would be the first step, understanding how the loan matures and the payment process could further prevent defaulted loans in the future. Adding a prevention/collection team has made the process more transparent for the student before they hit any repayment stage.
Maybe the school should make the student aware that total cost of the program.. The payment plan and when the loans will go back into repayment.
Provide detailed info regarding student loans and the repayment options as well as maintaining communication with the lender.
