Where Is My Loan Advance Check ?? The "Give Me" Mentality
What is it now with a majority of students thinking they should get "paid" to go to school?
Diane,
For some students, they think that financial aid is a gift and does not have to be repaid. Default management works hard to dispel those myths.
This is where the direct loans website is such a fantastic tool. We do not allow any students to proceed with financial aid at our institution unless they have taken the 16-page quiz regarding what exactly they are taking out when they apply for that MPN. I make the comparison to a car or house note, as it is very similar to the expense they will be facing, both in time, and in cost, if they take out financial aid every single year of their degree program. Having not been very well informed myself when I was going to school, and having a huge debt to repay, I make sure I go above and beyond to prepare this student for what can very easily be a lifetime commitment to paying back what you take out for your education. There is nothing free about going to school!
Russell,
Very true! Our responsibility is to inform the students to the extent they fully understand the contract and their obligations.
Lori,
Yes, financial aid is to further their educaion but also loans need to be repaid to keep the student out of default.
Lori,
We need to prepare them for debt management and their obligations once they graduate.
We see this all the time. Again, we need to provide appropriate information and allow them to compare apples with apples! Students don't always have all the pieces of the puzzle unless the institution takes the the time to provide it.
Yes, our student finance team offers assistance pertaining to the students personal budgets while they are in the program. Of course we have to remind the student the purpose of obtaining financial aid is to further their education.
It starts with us and we give them all the information that we possibly can, but when you're battling against misconceived notions of friends receiving those $3000 checks, most times your advice is falling on deaf ears (or so it seems). Students with financial hardships (which is likely what lead them to go back to school in the first place) is more likely to willingly take on more debt than someone who's only concern is getting an education. This becomes especially difficult when your target market is people who are typically unemployed.
Lori, this is a fantastic idea. Do you review their daily budgets with them when they visit FP to seek additional funds and/or during repack?
Rick,
For some this is the first big check they have seen. They must understand that this is indeed a loan for their education.
Sometimes, after issuing a loan overage check, the student disappears for a few days. We need to explain in detail the reason they are in school in the first place.
It is a good idea to give the students on-going education and awareness of "debt".
Lori,
Interesting approach!
They must understand it, but it does not mean that they do. I can understand that some student actually need help to get through school, but we need to be talking to them about this problems or situations that they might already have before enrolling in school. Additional funds might help them for a couple of months, but if they are in a situation where they are desperately waiting for additional funds to be able to pay the rent, etc. we need to be able to set the expectations from the very beginning. If you are having financial issues now, how adding debt to the equation is going to help you in the long run?
Ebonee,
This is where default management starts in the admissions process with financial aid officers. They are the best equipped to explain financial aid and the responsibility of paying back the loans.
I think a lot of them are misinformed. They see people who go to state schools and they are set up differently financially then our school. It's very attractive for someone who isn't working to recieve $3000. They don't realize it isn't "free" they will have to pay it back but someone has made them feel like they're getting free money...and they drop and then default...the "free" money isn't worth it.
Yes, we also experience this with our students. They actually include tuition money in their daily budgets. It is important to bring them back to why they enrolled in the first place. Get them excited again about furthering their education and making positive changes for their families.
Joseph,
They must fully understand the repayment process. Their obligations are due after school ends.
I always give 110% when it comes to educating todays students. When I have a student that all they talk about is the loan advance check, I sit down with the student and try to help them come up with different things they may change outside of school. When the student has a different view of things sometimes they are able to change their personal life and not need the loan check. I have found out over the years that some of the students think they do not have to repay the loan. They are under the impression thats it part of their tution.
