It is important for institutions to disclose all information regarding student's default status, or other financial concerns with the student. Part of our enrollment process includes checking the student's past history of federal aid; we then have our educational funding advisors review this information with the student individually. This allows the student to gain pertinent information regarding their financial aid status, as well as responsible selection of programming and future aid used. In doing so, the student becomes informed of their current situation, as well as provides insight to whether or not they will be able to successfully complete a program, or reach their goals, based on their financial status. If a student is found to be in default, we take ensure they have the proper contact information to move forward and resolve their default status, and determine a plan of action to move forward.
Educating students frequently on student loans could help the default rate. Students receive lots of information on first campus visits. Information sessions regarding student loans would be a plus.
Be honest with the student upfront with what payments will realistically look like. And, like the texts says, councel students about financial aid before enrolling and again at graduation.
I believe the best way to prevent default is by setting realistic expectations for the perspective student at the enrollment interview.
I think college can assign a Financial Services Representative to call all student that withdraw and remind them of the loans that are due, provide solutions and next step actions so that they dont go into default.
I think that a critical part of default management is to work with your students to graduate so that they can start a career and begin paying off their debt. We have a retention committee that meets weekly to discuss "at risk" students. We attempt to work with them to get them the possible tutoring they need or help they may desire.
I believe starting in the interview process the importance of loan management all the way through graduation it should be emphasized.
The article stated that many students who default are often those who withdraw. A strong and dedicated retention focus has helped our students stay in school through completion, in attempts to lower our default rate. We have also increased our focus on ReEntry students, helping students return and complete their programs. When students receive something (degree) for their money, it is more likely they will make the appropriate payments.
This is a great question! Something I wish my college was better at doing is informing the Admissions Reps about other departmental requirements and processes such as financial aid.
Other than the minimum documents and actions needed for accreditations such as entrance counseling I’am not sure that my college does anything above and beyond.
We do offer a lifetime employment assistants that current students and graduates can utilize to help them find and prepare for jobs.
The most important thing That I think we can do to prevent default on student loans is to educate and remind the student. Not just have them sign a paper that 80% of the time they don’t ever read.
I do believe that ALL Colleges should have a staff member that contacts each student at the beginning middle and end of the student's program. This individual would inform the student on where they are in terms of their current total financial aid use including loans, grants, and any scholarships that they may have used at each point.
By the student being informed how much they used and how much is projected for them to have left this would help them not requesting stipends and also get them thinking about how much the monthly payments will be once they graduate. This would encourage the students to work harder, get better grades, so they can be more marketable to employers and find better jobs after graduation.
Educatino out side the classroom is just as important as Education in the classromm to have successfull students.
Does your institute go above and beyond to truly educate the students?
The most important thing an institution can do is to reinforce and support existing policies and resources the DOE has created to ensure students are aware how loans work and how to manage repayment. Financial Aid workshops, loan counseling, and even sending helpful reminders to what resources the DOE has online.
I share information pertaining to the fact that the financial aid department will help each and every student explore all available options to secure funding, and that completing a financial aid plan only ensures successful enrollment. Successful program completion will require following through with that plan re: loan repayments, etc, and that it will be wise for the student to budget properly and to ask their financial aid rep any questions that they may have throughout the process.
I believe keeping in touch with the student regularly: during their enrollment & FA process of course, as well as throughout their college career. It is good to just "check-in" to see how things are going, and to help make them feel good about their decision to attend school and to go the route they have chosen.
If there is a good relationship and bond with the student and the FA coordators or recruitment specialists, there may be less of a defualt rate at the school & the employees can have an impact!
Recruiters at our institution receive spreadsheets with students who have been absent for the courseroom and in jeopardy of maintaining satisfactory academic performance (SAP). This enables us to reach out to the student in an attempt to resolve issues or problems and avoid potential for default.
Robb Thompson
My school has had a default management department, which has been successful for current students and also alumni. It creates a great opportunity to insure that they can get through the issues and hopefully do not go into default.
In admissions we are limited to what we can say about the FA process, but we do make it a point to talk about the investiment in your education and that no one goes to school for free. We talk about how this investment sets you up for success and more opportunities. Once they are enrolled and go through their FA process, they do entrance and exit loan counseling.
there should be a one on one contact with the students just prior to completion. this will encourage the students to follow thru with their responsibility to repay their loans.
Discuss the program requirements and financial implications of logging into online courses with students before they start their courses.
My question is based on my conversations with students on the telephone. They are aware that they might be in default, but have no idea what their alternatives might be. They use the default as a way to get around speaking with me. How do you get them to seek information on possible alternatives for them to possible continue going to school?
My school talks about this subject multiple times throughout a students time here starting with the first interview. Then again at the Financial Aid meeting and anytime there may be a change in student status. We also have a department in place to discuss repayment and options of their loans as they approach graduation. No one gets through the program without having these discussions.
The most important actions an institution can take in preventing default on student loans are both reviewing the loan information and then keeping a constant follow up with those students who have accepted loans.
