I think counseling the individuals is the most important - our school has a full time financial aid staff that is able to meet individually with each of our students to walk them through the process - I think it's a great benefit!
I think that the best measure taken is counseling the student diligently throughout the program on the importance of repaying their debt. It seems that the more that they understand about the process itself, the more likely they are to work on a budget. Our school is as realistic as possible about the obligation that the student is making up front. Should their financial situation change while they are with us, we help with a new budget plan to keep them on track.
The most important thing that can be done to prevent default on student loans is having a discussion about finances before the student enrolls.
While obviously staying in compliance, it is important to ask the tough questions about a prospective student's finances in order to determine where they will be able to cover the costs. Does the prospect have a job? What do they make? Do they have money left over each month to save for their education? Can they trim any luxuries from their budget to put towards tuition?
These are questions that need to be asked in order for a student to develop an effective plan to pay for their education when the time comes. By having a realistic strategy outlined, a student will decrease their chances of facing default.
Years ago we actually ran into some problems with our default rate. For many years now we employ a full time person that does nothing but run our default management program.
Putting that type of emphasis on the issue has made all the diference and we no longer have those issues.
our students are explained the financial aide process when applying for school and they are also have an exit interview with financial aide to understand when to expect payments and roughly the amount and options available
Providing the student with all documentation and disclosure forms allows the student to make the decision as to whether this is the right school and program. Being upfront with the student is very helpful. It is the responsibility of the student and the school to make certain that the student is well informed.
The most important in preventing a default on studnet loans is providing detailed information on all tuition and fees that studnet is facing. Studnet needs to have a clear understanding of the amounts that he/she is taking in grants and loans so he/she can properly adjust budget for the future repayments.
I think the only thing that can be done is educating the student on how student loan debt works. As well as the students payment and deferment options when they complete their education(or end their education early). Also, just because you spend effort in educating the student does not mean that they will follow the advice given to them. But it all starts with first making them aware of the options available.
My school does as well Janice! I think it helps the prospective student feel a little more comfortable about the whole process.
Just make sure the students know to stay in contact with their lenders.
Have strict guidelines as to who they allow into their school. For example, if they have a history of default, have sop's in place to allow or not allow that individual into school.
yes, we do talk to students about debt repayment options and also let them know there are consolidation options with the us department of education...
I feel that discuss safe practices for establishing a plan for repayment is the most important
Clear communication with students on the total cost of their loans that will need to be repaid and the interest amounts explained is very important. Many students do not understand the long term responsibilities of their loan amount. I think having budgeting workshops and default counseling right before graduation would be very helpful as well to help graduates.
I feel one of the most important things an institution can do to prevent default on student loans is to go over graduate employment rates in detail with enrolling students, and ask them open ended questions to be sure they understand.
Communication is the key. Find out what the situation is with the student to work with them to resolve issues. Financial aid coordinators can really help by using their knowledge to help resolve issues. We work as a team to come up with solutions.
As rep's we must stress the importance of paying back their student loans and be honest with our students about the repercussions if they dont.
Our institution does its best to keep in close contact with our students to assist in prevention of default.
Adequate information is the key. The FA department does a great job and our students remain well informed throughout the educational process
Very thorough counseling before taking on any loans
