Be upfront and explicit in the loan counseling process.
At my school we do not have Federal Financial Aid, but what we do for those students that use one of our payment plans is to constantly remind them of payments and give them ample opportunity and time to present us with any problems before they arise.
We have a department of people who are focused on helping our students better manage their student loan debt. It has been a great success for our school and students.
The most important thing is have happy, satisfied GRADUATES. That means that we need to make sure we are meeting expectations and not trying to oversell what we have. Nothing is 100% and our students should understand the good and the bad so they are never disappointed....that will help retention reducing default.
I agree a one time entrance and exit counseling is not enough to inform students on how to handle their student loan debt. Schools should take a more pro-active approach to inform students through-out their time at school as well as once they graduate.
I think it is very important in order for the prospective student to be aware of any debt they could have as well as any information in order to help repayment.
I believe the very first course a prospective student should take at any post-secondary educational institution--if that student will be taking out student loans--is an on-going course that explains in great detail the transaction of funding one's education with federal student loans. It should feel just like any other course with a syllabus, discussion of central themes,extensive knowledge of components (lenders, options, etc.) with an intended understanding at the end of the course. This way the student enters their educational experience with a balanced understanding and set of expectations so that the student is best prepared to conduct him/herself at time of repayment.
Do not make up information about federal financial aid
Being clear about what needs to be repaid, meeting with financial aid advisors during enrolment and also during the exit. Our students have a relationship with FA throughout their time at school.
Provide term distributed emails discussing the offered loan payment workshops available at the institution, that way the Students are consistently aware of the need to be careful with their loans nort just at the beginning of enrollment and at exit of the institution.
Make sure the student understands the importance of paying for their education once they finish their degree and find a good job.
Early detection. Our school has a employee that helps with all the students that are in default or becoming close to defaulting on their loans.
I think it's important to set a clear expectation, from the start, so that students completely understand their commitment.
I agree. I think that some students are so focused on going to school and perhaps a little misguided on what they will be making after it is all said and done that their repayment becomes somewhat of an afterthought.
I think the most important thing they can do is to make sure they set clear expectation as to the amount that will be owed upon completion. I know this is supposed to be done through entrance counseling and exit counseling but I still don't think a lot of student full understand how much they are borrowing and what needs to be repaid. I think a strong emphasis on insisting that students research the occupations they are seeking and implement more counseling would help establish firm expectations as to what will be due later on.
Our institution has found that reviewing in detail all financial obligations and loans with the student and family are important to the long-term success of repayment. We make sure before they start our school they know how they are paying for school - are they using grants, loans, what type of loans, how much in loans, terms of loans, etc. When a student is aware of their investment, they tend to want to succeed and graduate and those who graduate tend to make payments on their loans.
Our school has staff on hand to speak with students and help them set up repayment plans and helps figure out how to keep students out of default
Our institution is very proactive in making sure that students are well-informed regarding their financial obligations while in school and after graduation. Our Financial Aid staff covers their expected contributions thoroughly before the time of enrollment. We have subscribed to Financial Literacy tools that are made available to all students and some participation is required from every student in their first month of classes to get them acquainted with the tools available to them.
We use a program called IGrad. It is designed to inform our students on the importance of Financial literacy. Not only about student loans, but also about bugeting in general. Entrance and Exit counseling about important, but I don't think most take it as seriously as they should. Sometimes it seems like they rush through the process and don't read it as thoroughly as possible.
I think it is important to have financial education/management classes, specifically revolving around debt. No matter what profession one enters without sound financial management, they will always struggle.
