The most helpful thing a school can do is educate students and encourage responsible borrowing. Taking out only the amount of loans needed to cover tuition should be encouraged.
Our departments do an excellent job of educating our students in regards to FA from enrollment all the way through to graduation. This is done by providing workshops, asking the difficult questions and holding our students accountable.
We so a two hour long event to teach students and parents about FA.
At my school, the admissions dept works closely
with financial aid to discuss and counsel students
before thy enroll, during school, and after graduation. We assist them in securing state assistance for education, gas, food and housing
costs. This can reduce their financial aid
responsibility.
It is important to remember that many career college students have not had to be loan responsible thorugh their lives. With that said, a constant sprinkling of the importance of loan responsibility and budgeting throughout their educational process is the most effective route. A one time training won't do. It has be be an item of importance and be discussed reguarly.
making sure the right people are answering the question is the most important. Also, making sure the those people are well educated with that information. We have a department that is specific to loan managment and repayment.
We implemented a full time default manager to combat the issue.
I believe the best way to help prevent a student from defaulting on their student loans is to make sure they understand the responsibilities that they have when taking out student loans. Also, as part of their orientation, the student is provided with information about how to prevent a default from happening and also required to learn about financial responsibility and money management as they prepare for their futures after college. Our institution also provides required exit counseling with members of our financial aid department as a means to help the students understand what will be happening with their loans upon graduation. This has seemed to help the students and prevent defaults from happening.
We have added a course that students are required to take that deals with personal financial planning and financial responsibility as well as exploring career opportunities.
Providing workshops and being upfront with students when they are completing entrance and exit counseling is important to assist students with default management.
Our institution helps new students understand what their payments will look like upon graduation. Funding advisors also look at earning potential and help the student understand how much they will be making vs how much they will need to pay in loan debt. Helping students understand that borrowing just for the cost of tuition instead of taking out excess funds that may not be needed is helpful in reducing loan debt which gives the student a better opportunity to pay their loans back.
Meet with the FA department multiple times before the enrollment process.
I think a complete disclosure of all pertinent information relating to the pertinent career field is helpful.
Our student loan specialist focuses on doing exit counseling and contacting students on a weekly basis.
I think the FA personnel should go over in detail what there loan payments will be after they graduate. Some students have no idea what this will mean
Our institution discussions all areas of financial aid with our students or prospective students. The details of what is covered, not covered, grants, scholarships, ect are discussed at their appointments. Financial aid will continue to follow up with our students throughout their program.
First, it is important to maintain consistent contact and effective follow up with the student throughout the program . We use our lead / record management system effectively to maintain contact.
This includes follow up calls and emails.
Full disclosure upfront is the best way to help prevent defaults. Set realistic expectations for the prospective student and consel them when they graduate. I know our school does it.
Being that financial education is taught very little in high school or college, I think it is important that this type of topic is discussed with students, throughout their education. First it is beneficiary to inform and discuss with students what to expect with their student loans after they leave school. Also in that conversation inform and discuss payment options and default mitigation as well. In addition to that, I think basic financial budgeting classes are also critical. Many students have no idea how to balance a checkbook, let alone pay their bills on time and/or be responsible for debt they are unsure how it works. Overall I think financial education is key, from how to manage student loans to how to budget to manage them as well.
Our school has a seperate financial department that handles the loan and grant process. They also manage the debt counseling.
