In addition to the entrance counseling and the exit counseling done at our school, there is continuous education regarding student loan debt every time a student needs to renew the financial aid package or when they need to update information on the FAFSA. Our student services department does a good job of informing and educating. There are also posters and graphs throughout the campus that are placed in heavy traffic areas which outline basic finance strategy and debt repayment budgeting tips. It is important to deal with the reality of the repayment schedule early on in the process and assist the student to prepare efficient strategies to meet their obligations.
Many students are so focused on starting school and getting through the program that the true impact of student loans is a minor issue. Yes, loan entrance and exit counseling is needed, but it's definitely not enough. I think the students need accurate information about what entry level salaries are in their selected field. They should also be given information about what a typical monthly student loan payment will be six months after they graduate.
I have noticed that students, even after FA counseling, do not have firm grasp on the difference between loans and grants. We are trying to emphasis the difference and make a point to restate that students should only take out FA for want they NEED not what they WANT. Helping students make wise FA decisions should impact default management.
Basically, even though schools are to counsel students both during their entrance as well as their departure with their school they should still maintain common sense on how to repay a loan. Schools ultimately are not responsible for the financial behavior of a student. Why should they be?
Honestly, the most important thing I think anyone can do to prevent student's defaulting on their loans is to make sure they completely comprehend what is involved with every part of accepting a loan, what the responsibilities are, methods of handling the debt, and consequences of default. Loans aren't something to fear, but they must be understood in order to be responsibly handled.
Educating someone on loans is the most important first step to helping them successfully manage the debt.
It is is important to inform the students about student loans and the ways to prevent defaulting on the student loan. Classes should be implemented to teach the students about the loans. They should also should be re-informed throughout the school year to verify that they still remember the information and are up to date.
Counseling students about loans and repayment of loans should be something that happens way before they get to college. Once the student is applying for student loans,limits should also be in place where the student can only borrowing what's necessary for school.
Just setting the proper expectations and educating the students on prevention should help.
Our Student Services team does a great job of describing the type of funding, completing entrance counseling and exit counseling with our new students. They also talk with attending students about this on a regular basis.
I think we need to educate our students on what options they have when they graduate if they are having financial trouble. making sure they know who to contact and they the federal government will work with them.
The most important thing to do is to talk to EVERY student about it and provide information to those who can help for additional concerns.
I think the most important thing an institution can do to prevent default on student loans is to be up front with the demands of the program/occupation so they are fully informed of what they are getting themselves in to. Also, if the student is not progressing despite intervention, they should drop them from the program early enough so they don't get to the point that they would have to repay the whole loan back.
I would say the most important thing a school can do to prevent student default is to spend the necessary counseling (and I mean one on one student conversations here) to help show students the benefits of borrowing responsibly. Not all students will, but these interactions go a long way to promote healthy and responsible student borrowing.
The price calculator is a great tool to provide transparency to the prospective student. The more information that is made available to the student, the sooner the student will be able to decide whether or not the institution & program is the best fit for them.
We have financial aid entrance and exit counseling which I feel is essential to students realizing the debt that they're taking on and how important it is to be responsible by making payments. In the event that the student cannot afford to not hide from Sallie Mae, communicate!
I think being honest and upfront with them about the responsibility of repayment is beneficial. Also, providing individualized counseling is also very important as well. Knowledge is power.
Like Janet, I'm not involved in this area much at my institution. I do believe that it should be discussed during new student registration and just before graduation. I also believe that follow-up sessions during the semester would also be beneficial.
we provide a cost estimate to every student who applies, and is gone over again when they complete the finacial aid process
I agree with this statement John. The student needs to be well informed to make the right choice and understanding the debt management after completion of school is very important.
I would say that providing Financial Aid counseling would be the best option before the student gets approved with the loan. Providing the correct information and what the student is getting into would be beneficial upon completion of the course.
