the initial counsling is critical. ensuring students understand that repayment is expected regardless if they graduate. We have individual financial planners who consult with the students on at least 4 occasions prior to starting school to ensure they understand the process and their responsibilities
I think it is important for the student to fully understand the financial aid process and how loans and repayment of loans works. This can be accomplished during a financial aid meeting between the student and member of the school's financial aid department. I also believe it's essential for the school to do activities to promote retention of students. The student is much more likely to payback his or her loans if he or she completes the program or graduates. The main contributors to retention at my school are the instructors because they are the ones that make the biggets impact on whether the student feels the education is of high quality, relevant and vital to future success. I believe our campus does an excellent job of achieving this goal.
I believe preventing defaults lie in getting the student into the major that best suits there strengths and interests. The student must know the importance of doing well each quarter to ensure a chance for employment. The seriousness of loan default must also be communicated as well.
I think the school should start talking about default rates right away. Students should be informed how important it is to start paying their loans back after graduation. We have a specific default advisor at our school now.
I think that the best thing to do is to make sure that the students is aware of all financial obligations. Also, know the consequences of default loans and what action needs to be taken if this were to happen.
I think one of the most important things a school can do is to make sure that the program is in a field where there are positive financial outcomes to begin with.
Making sure the School, Program and Student are all a good fit for each other. Disclosure of loan payback requirements at enrollment, during FASFA updates and upon graduation are key.
I feel that it is important that the school has a staff or resources that can help students overcome generational proverty.
I agree with Dino. People think if they file bankrupcy they can walk away from student loans. We need to inform parents too. I've heard far too often that everybody takes out student loans. It's like it's no big deal. Well it is. 53.7% of graduates who have a BS or BA degree 25 years old and under are unemployed or under employed. That is scary in times of good employment.
Make sure the prospective student is aware of all the costs and all the requirements for employment and give them accurate employment statistics,income potential and default rates for the school. I know of people who paid $100,000 for a degree that they can't do a bloody thing with. Even if they did get employed the income isn't enough to justify the cost of their education. I got three members of my own family to attend my school and they easily got employment and good incomes compared to the cost of the education. These are human beings we are talking to. Do unto others.
Kelly,
You are right and it is very important to make prospective students aware of the reality of their obligation.
Kimberly Stein
Giving students as much infomation as possible on the matter is one of the most important things a school can do. Knowledge is power!
The unfortunate part of our K-12 system and even at the collegiate level, is that little is done to educate student about finances and the effects they can have on one's life. Bad credit, student loan defaults and bankruptcy can not only make one's life difficult but can also negatively affect a person's ability to get many jobs. It is important that we as educators help students understand how important it is to keep up on their loans.
I believe that the full disclosure paperwork is very helpful, but I also think that continuing to have the conversation with students throughout their program is really important.
I feel it simply comes down to information. I informed the student that there are obligations on their end that they must uphold in order to receive financial aid. I tell prospective students that if you fall on hardtimes and you are struggling to make payments on your loan it is very important that you contact your lender immediately. If you do not ask for help people will assume everything is ok. If you do not pay your loans you will fall into default. You cannot declare backruptcy on your student loans. Reason why is they can take your car or your home but they cannot take back what you have already learned. The government will wait until you begin working and garnish your wages and also have the right to take your social security.
One of the most important thing to do is to offer flexible scheduling to provide an opportunity for students to work while in school. As a result, the student can begin putting money into his/her education while in school and/or saving for the eventual loan payment. College advisors should be preparing the student for financial success not only after graduation but also while the student is IN SCHOOL!
Educate it's students. Not only at the time of enrollment and time of exit, but also while they are attending classes. Hold seminars to discuss the importance of paying student loans and keeping students from defaulting.
Our school provides constant awareness with our students and stays in touch to ensure successful repayments. We also work with students that are in default to help them get in good standing so they can continue to complete their education.
We need to make sure that all students understand this process from enrollment to graduation. Educate them on the repayment process on the back end and the importance of repaying the loans.
One of the most important things we can do is educate our students. We can educate them by providing detailed loan information to each student, their lenders, payment amounts, and other obligations. This would be very helpful in preventing students on defaulting.
Our school believes that it is important that the student views their education as an investment in their future. From there, our FA department sets expectations and follows up with each student so that they are aware of their obligations.
