The school I represent does not get federally funded financial aid. I don't have anything to contribute.
The most important thing an institution can do to prevent default on student loans is to fully disclose and explain financial aid and the student's obligations and be sure to not take short cuts on entrance and exit loan counseling. Institutions should also focus on quality education and service to increase retention and graduation rates.
We have a system in place called iGrad. It is a financial literacy online program that students must take while they are in school to prepare them for the repayment of the loans. It is extremely important for us to educate our students in all aspects of this are.
We ensure that all of our new incoming students have a meeting with our FA department before starting classes. With our school being a nursing program our default rate is pretty low.
i think the placement rate of any program should inform the student of any possible problems.
I think it's important to go over in detail the "refund policies" on the enrollment agreement with the student. To make sure they are fully aware of what happens if they decided to withdraw from a program. Many students think because it's "financial aid" they are covered and will not face any consequences for early withdrawal and not completing the program. They need to be told, once they leave the program repayment of the loans will begin very soon, because they are no longer a fulltime student.
I think that we should make it a point to check in more with our students to see if they're keeping up on their payments. At that time, the student could also receive some tips or ideas on how to manage the payments. Plus, the student must take on some responsibility and call in whenever they have questions about their financial aid. I do know some students will call in now in regards of their award letters. I am not sure if our current FA does this since i'm not licensed in financial aid but as long as everyone is on the same page and well informed, we have a better chance of not worrying about our default rate.
Our students are not only required to participate in entrance and exit counseling, but they are also expected to complete 6 modules on financial literacy during there time here. The modules help not only with loan debt but also household budgeting and good v bad debt!
I think it is important to let them know upfront what the expectations are for repayment. Let them know that it is not something they can ignore.
I think the most important process is to have open communication with student and student with college. Most students in difficult situations run away from conflict even when someone is there to help. I believe there should be a warning process as students are not paying other than a letter from DOE stating such. I have shared with students to be open and upfront with lenders and school, if something is going on in life, so options can be presented to student to manage best case scenario for student issues.
I think that working closley with the student to find employment quickly would help them be able to repay loans in a timely manner.
I think educating the students on the debt to income ratio on their chosen field is the most important part. And really stressing the importance of RESPONSIBLE BORROWING. You take out loans to pay for school, not pay for life.
I think it is important to have financial aid officers who know all of the laws and regulations to educate students and their families on financial aid. Often, this is the first exoerience these families have and it can be extremely confusing and sressful to them. If the families know exactly what they are obligating themselves to, they can make an educated decision on this.
I think that ultimate disclosure by both the financial aid department and admissions department is critical in the student's understanding of the seriousness that defaulting on a student loan can pose to the potential student. As mentioned throughout this module it is the responsibility of the organization to disclose information regarding the responsibility of the student when taking out various forms of financial aid. It is important for the student to understand the consequences of not repaying their student loans and to better prepare for their loan payments upon graduation. Our institution has taken measures such as discussing payment options upon graduation, as well as implementing a personal budget that is to be filled out with the financial aid advisors to get the students thinking about payment options in school, as well as once they graduate. Students that are able to prepare for these types of payments and be aware of them from day one will be more prepared upon completion of the program rather than those who are not advised or aware of the stipulations of such.
We make sure the students know the total cost of the education, that if they do use student loans they will have to pay it back. We also create a financial outline that fully explains every aspect of their financial aid so the student knows what their getting into up front.
The best attribute ANY school can implement to the betterment of the student's responsibility of paying back their student loans is not only the pre-loan counseling, but now the grad counseling. That should have been instituted years ago as it is a solid idea that not even our public high schools offer to graduates: -How to balance a budget and the importance of paying bills on time.
Clear and complete communication with the student in regards to the debt they will incur and repayment plans prior to accepting student loans as well as prior to graduation.
don;t start this training unless you are going to complete it, take your licensure exams, pass them and act in good faith to be employable in the economy.
Make sure that the student understand the importance of paying back their loans.
The only thing that can be done is provide information about student loans and repayment options as well as any deferments. Although it is important that they are presented with all available options and encourage them to use the resources available.
