I feel that one of the most important things an institution can do is provide the knowledge needed to understand the FULL financial aid process, from beginning to end. Including repayment. If you spend sufficient time going through the information you can be sure the students/borrowers are fully aware of every aspect of the process, including default.
Educating a student about the importance of finishing their education in a timely manner, doing the best job possible to ensure success and continuity in the program, and moving forward in the job arena immediately following completion of the program is the best kind of encouragement we can give our students. This also enables us to talk positively about how student loans can best be taken care of. Talking about negative consequences may be helpful/important, but are certainly not the best way of helping students maintain excitement about what they are getting themselves into--education.
Angela,
It sounds like your school has implemented a very effective process.
Kimberly Stein
it is important to make sure students are counseled on the way in and out of school regarding the loans taken out.
make sure that yours students are well informed. If they have more questions about how student loans will effect them be sure they have the information they need
A good idea may be to conduct money management training so that the students can be better informed on how to budget.
I think that the counseling that students at our school recieve at both pre-enrollment and post enrollment has been a tremendous help for them as far as knowing what to expect and how to handle their finances after graduation. Students really need to have that knowledge ahead of time and I feel that it helps them to be more successful with their choices.
We work one on one with our students to let them know what will happen if they end up in default with their student loans. I think that when a student has one on one attention they are more likely to listen and understand. Every situation is different but its not like these students dont have options.
Lawrence,
That would be a wonderful training to implement for students.
Kimberly Stein
Ashley,
You definitely have a better chance of getting their attention when you approach it on a personal basis.
Kimberly Stein
I think the most important this a school can do to prevent students from defaulting in student loans is to make the student aware of where they stand and what will happen if they end up in default. Prepare them on how to deal with their student loans so they dont get in trouble with them.
I think that it is important that students be made aware of how going into default affects them in future endeavors as well. Many young people do not realize the benefits of having a great credit score and how it can impact future opportunities.
I feel that a school should require students to participate in quarterly financial aid workshop. In the workshop students should participate in activities that help them strategize how best to handle their funding while in school as well as after they graduate.
In my opinion, the most important thing an institution can do to prevent default is educate their students about the process and what to expect when you have studnet loans. Students need to be aware that if you do not complete college, receive a degree, and do not find employment they will have a high chance of defaulting on any student loans they may have taken out. The more they know and understand their options or outcomes the better financially off they will be. Recently in the news, I have heard talk of a petition requesting to elminate student load debts for many. I think this would be awesome if our country passed such a law.
I agree it is extremely important for a student to be aware of the consequences of defaulting. Our school has employed an full-time advisor on staff to help students to avoid those situations.
It is extremely important for a student to be aware of the consequences of defaulting. Our school has financial aid dept to help students to avoid those situations. They also will work with prospective students to talk with the department of education to resolve default issues and set up loan repayment plans and loan consolidation options.
To be upfront about the cost of the program and counseling upon enrolling is important as well as
informing the student of graduation rates.
I think it is vitally important to advise students prior to enrolling regarding their responsibility in repaying federal loans. Fully educating students before they make any financial commitments.
We have a price calculator on our website that shows you the exact amount to expect to pay for your education. Also when students come in for an interview, they are paired up with a Financial Planner that will break their tuition down for them and what they will expect to pay for their entire 2 years of education.
"Workshops" to keep students informed, and provide options seem to be a pretty good option. Information provided in any way is valuable, and most people simply dont know what their options are. Having a way to provide those options and that information would seemingly be extreemly helpful to students with loan debt.
