Education of the student on their responsibilities and the long term consequences of defaulting on their loans. We have a staff member who has been in banking for 30+ years who will help guide students in debt management.
we talk about student loans and have a loan help desk that services questions or counceling for all of our students
The best way we can help prevent students from defaulting on their loans is to be up front an honest about all costs and loan periods that the student will have to take part in. It is our responsibility to make students fully aware of their financial obligations prior to attending school. It mayt not be an easy conversation to have, at times, but it is absolutely necessary.
Consistent and constant loan counseling throughout the students time at the college is imperative. Requirements are during the students initial Financial Aid appointment and at the time of student's exit from the school. Student's should review loan counseling materials any time that the student visits Financial Aid for renewal of loans.
Review Loan Management Skills in a College 100 course to remind students what to expect during their time in college.
I feel that education is the best policy. Keep bringing them back in and revisiting the area of budgeting and letting them know what is out there to help.
Counsel them thoroughly before and after completion. It is important for them to know that the debt will be there unless it is paid and can ultimately ruin their credit otherwise.
Extensive and focused entrance and exit loan counseling.
Our financial aid team does a great job of really going into detail so the student knows exactly what to expect. We also ensure that they are committed to becoming graduates before we enroll them into our school
Information sharing is of the utmost importance.
They need to complete entrance and exit loan counseling and should meet with FA if/when any questions arise.
I agree with that. I never really thought about it but discussing it throughout would probably keep it fresh and help them.
Prevention, prevention, prevention! We do take initiative in hosting workshops to new students as well as graduates. I have hosted several scholarship workshops as well. The more information the better!
We need to make sure students are well informed and understand the financial commitment they are making.
I believe that reinforcing the importance of our students obligation to be able to pay as they are capable of during their pursuit of graduation is important. This limits the out of pocket payback that accrues while not making payments during their schooling. Plus how to make sure that they consider their loan debt a bill and treat it importantly once they graduate.
The most important thing an institution can do is provide excellent education and a strong career services department. Career services should contact every student before they graduate and go over services available, etc.
One of the best ways to prevent default is to have a student who is aware of their options, as well as their obligations.
Provided that the student was adequately informed of their obligations prior to enrollment, they should not encounter unexpected obligations.
Circumstances can certainly change, and our school utilizes a default prevention department to work with "at risk" students.
I think that schools should incorporate some type of budgeting course or workshop that emphasizes the importance of paying on loans of any kind.
I think it is really important to clearly explain to prospective students that if they are taking out a loan, it is just that, a loan. Eventually they will have to pay it back and if they are not comfortable with this then they may need to rethink their financial plan.
Identify at risk borrowers and encourage withdrawals to finish the program.
Close communication with the financial aid office is crucial to ensure that loan defaults are minimized. I don't feel as if defaults can totally be avoided; however, just like many other areas of advise that a school can provide, information regarding how to be financially responsible should be discussed with EACH AND EVERY student in a consistent fashion.
