We are doing maintenance August 17-19, 2018. The process will start at 6 p.m. on Friday, August 17 and will be completed as soon as possible on August 18 or 19.

Prevent defaults and encourage debt management on campus

Prevent defaults and encourage debt management on campus

Financial aid professionals are in an ideal position to help at-risk borrowers understand the importance of repaying student loan and consumer debt. You can increase student retention and reduce student loan delinquency and default through a variety of techniques.

Collaborate with business partners

Communicate with students

  • Set up an orientation session or course for new students, covering topics such as study skills, how to be a successful student, time management, and resources on campus
  • Require students on academic probation and re-entering students to complete a course which includes study skills and time management
  • Hire a dedicated default prevention staff member: borrowers need personal contact
  • Work with borrowers after they leave school (make phone calls or send letters/e-mail to borrowers who are in grace or who already are delinquent)
  • Monitor potential withdrawals and advise these students about their options
  • Provide a calendar to students exiting your school - after you've marked their repayment start date on it
  • Review your portfolio to identify students at high risk for default (if resources are limited, focus efforts on at-risk students)
  • Start a peer counseling group on campus

Counsel students often and in a variety of ways

Implement financial literacy programs

  • Get financial aid and money management on the curriculum for classes that have a financial component - even if only for one hour each term
  • Adopt a financial literacy program that addresses debt management issues beyond student loans including budgetinghandling credit cards, and choosing insurance
  • Use interactive tools, such as Mapping Your Future's educational games, to reinforce students' knowledge about student loan borrowing and financial literacy
  • Use Mapping Your Future's calculators to help borrowers estimate their payments, create a budget, etc.
  • Use EX$EL’s Financial Education course to educate your current students

Use technology in creative ways

  • Allow students to keep their school e-mail addresses after the leave or graduate so you have an easy way to reach them to offer assistance
  • Use EX$EL to engage your students through a Financial Education or Repayment Success course

Leverage training and tools to help you

  • Attend default aversion and financial literacy workshops when offered
  • View the webinars on demand, which include past default prevention webinars
  • Consider using the money management flyer that includes tips for managing student loan debt
  • Subscribe to the Mapping Your Future Higher Ed News to receive updated information and ideas about default prevention and other higher education related topics
  • Share your successes with your peers