Full disclosure upfront is the best way to help prevent deflauts. Set realistic expectations for the prespective student.
i think the most important thing a school can do to prevent defaults would be to make sure students are aware of what they are getting in to before they attend class.
The most important thing that an institution can do is to provide loan entrance and exit counseling. Also, the institution must make the financial aid services easily accessible to new and current students. We make sure that the student is briefed with financial aid before enrolling and then is set up for an official financial aid appointment to go over loans,etc.
I think the most important thing an institution can do to prevent default on student loans is to have a strong career services department that aids the student in finding employement and teams up with the Financial Services Rep to ensure the student is properly informed on exit counseling with their student loans. That way all bases are covered.
encourage students to stay in school and provide inside and ouside resources that may prove valuable in the student's retention. Students that withdraw from the school prior to completing their program are highly at risk of default.
Providing better communication regarding the impact of default and ways to avoid it from happening.
I agree totally. Comppetent FA reprsentives totally explaining their obligation is the most important thing.
They are required to meet with a Financial Aid representative to ensure they can afford there investment prior to starting classes, after graduation they are required to do an exit to have a plan to payback there investment. We also have career services that can assist them in finding employment to help with here student loan repayment.
It is very important that the students have a clear understanding of where thet are with their loans. Also, they need to be clear about what happens after graduation!
Our school hired a default manager to help identify students who may go into default and assist the student so it does not happen.
Give all the tools needed to help raise retention and always to post graduation loan counseling
We now have a default management person who helps students find solutions and return to school if necessary.
All of the information has been informative, although it does not apply to our company since we do not offer financial aid or government financing. We carefully screen our applicants for their ability to handle the financial commitment for enrollment.
Having trained and compliant financial aid representatives is the key to reducing defaults.
Give the student all the information he/she needs to acknowledge what the consequences are to defaulting on loans.
Making sure that students understand what debt and loans really are. There are a lot of students who think that a refund check is free money. They must be educated. You could always raise tuition so that they cant get a refund check or make them make a monthly payment.
A session of required counseling with regard to the total aount of student debt would have been very beneficial to me personzally back when I was younger and had student loans from my undergraduate degrees. Nobody said I couldn't buy that motorcycle with my "private education loan" so I did and reaped huge interest.
Making sure that student has spoke with fac advisor prior to enrollment agreement. Making sure student has spoken to default management prior to leaving school to put a game plan in place for future payments.
Our school has started a program called Igrad which seems to be of much benefit to students in regards to loans, budgeting, etc.
Loan counseling at the point of enrollment and at the point of graduation. In addition, we require a 'personal financial managment' course at the beginning of each program as well as an aspect of this class incorporated into one of the last classes in each program. Our FA staff also strongly encourage students not to take out excess loan money and explains the consequences of this long term.
