Good Credit Letters
The idea of sending good credit letters is awesome! It gives the student value and recognition. It also shows them the importance of paying on time and building that good credit.
Aurelio,
Positive reinforcement can go a long way in establishing good habits. Starting early can really pay off in the long run.
Cheryl Kesson
I agree! If we make a habit of communicating positive messages and useful school or industry information, students will be more likely to open our letters and take them seriously, rather than tossing mail aside with the assumption that it is marketing or collections.
I agree if we send out a good credit letter, we are acknowdledging that we are concern with the student status of payment, however if we have to send out a delinquent letter for this perticular student we have already establish a relationship stating that we are concern about your overall financial status.
Exactly!
We cannot wait until delinquency to establish communication. By the time a student is having trouble, all the contact information we have on file may be invalid and he or she will be dodging collection calls. If we have not already established a friendly and trustworthy relationship, it can be very difficult to reach the student.
Also, we need to help students choose the appropriate repayment plan and understand their deferment options long before difficulty occurs. If they plan ahead, students can select a repayment plan that they are able to follow, but they will be much less open to this suggestion once they are facing a mountain of late fees and past due bills.
Kellee Gunderson
I completely agree! Recognizing the students that are finically aware and responsible, by making payments while inschool should be rewarded.
Erin ,
Too many students ignore their federal loans while in school and grace, and are blindsided when repayment begins. Encouraging payment on institutional loans, or small interest payments on federal loans, gives students a positive experience with budgeting and money management skills.
Kellee Gunderson
I love this idea and think that it will make a difference at our school. We are constantly sending out delinquent letters for institutional payments. How great will it be for a student to be recognized on their prompt payments and a reminder of how they are setting themselves up for success when their student loans come into repayment.
kellie,
I agree! Waiting for delinquency makes us less effective because students are more likely to feel overwhelmed and ignore our letters. If loans reach of point of collections, it is very difficult for our voice to be heard over the din of collection agencies or other parties who are also trying to reach the student. Worse yet when collectors or servicers are aggressive and make students feel scared or embarrassed, further reducing our chances of a positive interaction. Creating a positive association with our correspondence and with payments helps remedy that situation.
Kellee Gunderson
What a great idea. I am going to bring it up our next FA staff meeting!! I can really see this helping a lot.
It is a great idea! I'm going to suggest we do it at my school.
Mala,
Excellent! Glad you were able to take something concrete from this course. Please feel free to let us know how this idea is received by your colleagues.
Kellee Gunderson
I love this idea!
I know that if I got a good credit letter I would 1- feel very proud of myself and 2-want to maintain this standard I have set for myself. I would hate to become a dissapointment.
I am going to use this idea.
Jason,
I feel the same way. When I was newly living on my own, I made many bad financial decisions (particularly around student loans) and it would have been a great benefit to have someone provide positive reinforcement to steer me in the right direction.
Students who have not yet had a credit card or car loan may not know the importance of responsible borrowing, so we need to prepare them as much as possible for student loan repayment.
Kellee Gunderson
This is a great idea. So often we just send out letters telling students that they owe money or are past due. Why not recognize students who are doing well. This will help them feel good about what they are doing and want to continue that in the future.
Amber,
In addition to letters from FA, the school can congratulate students for academic performance. We can also create opportunities for faculty and staff to recognize excellent team work, professionalism, etc. Increasing positive correspondence coming from various departments will help make students feel like a valued part of the school, and it helps us keep abreast of address changes.
Kellee Gunderson
Sending good credit letter is a great idea!
