Explain during their financial aid appoitment the consequences of default. This happens before they are registered for their classes.
The most important thing i would say is the exit interview. To insure that the student can a someone to contact once the have graduated in there program of study.
The financial aid department should give them complete information about everything involving financial aid
I think the best thing a school can do to help prevent default of student loans is to have workshops available to students on the importance of paying back your debt. Many students don't know or don't realize that when you fail to pay back you loans, it can greatly affect many other parts of you financial life.
We have a few things in place to help manage the default rates of our students. One is that we have counseling in place witth each student to ensure their understanding as to what they are getting in to. Secondly we follow up with our students as to why they have chosen to cease their studies. This allows us to address any issues that may arise from their withdrawl and to reduce the defaults. thirdly, we have a department that contacts our students that have a potential of defaulting on theur loans. They counsel the borrow as to what their options are prior to defaulting on their loans.
provide financial information and have brocher available
I feel it is important that the student knows that defaulted student loans will stay with them for the rest of their lives - that defaulted student loans will keep them from getting jobs and will hurt their credit score.
Explain and inform students upon completion of application what the financial aid appoitment consists of and the consequences of defaulting on a loan.
Michelle,
The total cost of the program should be listed on the enrollment agreement. Information about loan repayments should be part of financial aid entrance and exit counseling.
John Ware
By providing financial aid assistant to student will provide awareness to students on their loan debt ratio
Make sure students fully understand what they are doing and why they are doing it. Set up the right expectation for the student.
Make sure the prospect student is well aware of all neccessary requirements during enrollment.
Make sure that a student understands the entire process and what they are obligated to before starting school.
I believe that these are helpful guidelines any school should follow in order for every student to be successful after graduation.
It is a good idea to have default prevention specialists to assist educate the students before going into repayment. Our institution has implemented a default prevention team to help the students.
Make sure that the student knows the cost of the program. That student loans are "loans" and they will have to be paid back.. Make sure that they know "financial aid" doesn't mean free..
I think best practices is to ensure that each student is required to read through loan disclosures. I also feel that there should be additonal financial aid counseling given to students specifically dealing with the terms of their loans.
I completely agree. If the student understands that Federal Student Loans are NOT to be used inappropriately and that any, and all loans must be payed back according to established standards or harsh financial consequences are put in place, students then understand the importance of completing the chosen degree program.
I believe it's very important for students to know what to expect throughout the process from the day they enroll. Knowing exactly who they need to talk to about their financial aid, and when their status changes so they are always informed before hand.
Stacie,
Yes, making sure students are fully informed will make the process more successful.
Kimberly Stein
