Get Your Students Hired
The point about employers is an excellent one. Many check credit reports as part of the interview process… that would definitely scare me if I was delinquent on my student loan.
These are the students that need a little more than papers. We discuss the consequences of not paying student loans in detail during our financial aid entrance interview. Most students sit up and listen not only when they are told that wages can be garnished, but when they are told that their income tax refunds CAN and WILL be seized. We also discuss the fact that some employers will not tolerate employees who default on student loans.
How do we "handle" students who tell us up front that they probably will not repay the loans? Or the student who does not tell you that he/she will not repay their student loan, but you get an overall feeling from talking with them that they will not repay those loans?
Positive reinforcement (like the sending of “good credit” letters mentioned in section two) speaks to some students, while stressing negative consequences (the unpleasantness of collection calls, wage garnishment, etc.) speaks to others.
Hopefully you have learned some useful strategies from this course. I agree that just giving out a lot of paperwork often does not make a strong enough impression on borrowers. Previous participants have given great suggestions in the forums and have shared what works at their schools. One idea I especially liked was incorporating credit and budget topics into math and business courses.