I agree it is extremely important for a student to be aware of the consequences of defaulting. Our school has employed an full-time advisor on staff to help students to avoid those situations.
In my opinion, the most important thing an institution can do to prevent default is educate their students about the process and what to expect when you have studnet loans. Students need to be aware that if you do not complete college, receive a degree, and do not find employment they will have a high chance of defaulting on any student loans they may have taken out. The more they know and understand their options or outcomes the better financially off they will be. Recently in the news, I have heard talk of a petition requesting to elminate student load debts for many. I think this would be awesome if our country passed such a law.
I feel that a school should require students to participate in quarterly financial aid workshop. In the workshop students should participate in activities that help them strategize how best to handle their funding while in school as well as after they graduate.
I think that it is important that students be made aware of how going into default affects them in future endeavors as well. Many young people do not realize the benefits of having a great credit score and how it can impact future opportunities.
I think the most important this a school can do to prevent students from defaulting in student loans is to make the student aware of where they stand and what will happen if they end up in default. Prepare them on how to deal with their student loans so they dont get in trouble with them.
Ashley,
You definitely have a better chance of getting their attention when you approach it on a personal basis.
Kimberly Stein
Lawrence,
That would be a wonderful training to implement for students.
Kimberly Stein
We work one on one with our students to let them know what will happen if they end up in default with their student loans. I think that when a student has one on one attention they are more likely to listen and understand. Every situation is different but its not like these students dont have options.
I think that the counseling that students at our school recieve at both pre-enrollment and post enrollment has been a tremendous help for them as far as knowing what to expect and how to handle their finances after graduation. Students really need to have that knowledge ahead of time and I feel that it helps them to be more successful with their choices.
A good idea may be to conduct money management training so that the students can be better informed on how to budget.
make sure that yours students are well informed. If they have more questions about how student loans will effect them be sure they have the information they need
it is important to make sure students are counseled on the way in and out of school regarding the loans taken out.
Angela,
It sounds like your school has implemented a very effective process.
Kimberly Stein
Educating a student about the importance of finishing their education in a timely manner, doing the best job possible to ensure success and continuity in the program, and moving forward in the job arena immediately following completion of the program is the best kind of encouragement we can give our students. This also enables us to talk positively about how student loans can best be taken care of. Talking about negative consequences may be helpful/important, but are certainly not the best way of helping students maintain excitement about what they are getting themselves into--education.
I feel that one of the most important things an institution can do is provide the knowledge needed to understand the FULL financial aid process, from beginning to end. Including repayment. If you spend sufficient time going through the information you can be sure the students/borrowers are fully aware of every aspect of the process, including default.
I agree Scott with your comment, that has upper management potential written in the words. FA is a huge process in the admissions process and the students should be confident in their understanding of financial aid processes.
Students should also be aware of the consequences for not repaying student loans
The most helpful thing is for us to educate the students on the subject. Telling the students the long lasting affects of their actions now can have a lasting impression on how they handle their financial situation.
Our school does a great job of loan counceling when applying for student loans. The basis is to make sure students know that there isn't a guarantee for employment or high paying employment right out of the gate. Also, as a field admissions rep myself, we are trained to discuss these things while interviewing potential students to set expectation when student financial aid department assists them in applying for student aid.
Doing a thorough assessment of a prospective student's financial history will offer the financial planner the ability to come to an accurate qualification in regards to the borrowing of student loans. Not setting the student up for failure, and possibly preventing the chance of a bad note just to add a student loan to the books is a safe business practice to uphold. Every student has a different background and financial record. Conducting the financial interview is a necessity which has shown to be productive.
