Making the borrower aware of the obligations they will have as a result of attending the institution.
We created a "CDR" department which stands for Cohort Defalut Rate. This department's sole function is to inform the borrower upon entry to our school of their loan obligations as well as remindeand & reiterate upon their exit from school those loan obligations. They also track students after they leave school with three & six month follow up calls to ensure students are in repayment of their loans. They also provide assitance with communicating with their lender for the prevention or resolution of defaluted student loans.
It is always good to prepare the students and famlies about student loans because in many cases it first time that they had to use them. It always good to educate.
Have a solid understanding of the financial aid process and the debt that will be encured by the student and ensure that at every opportunity give the studetn the required counseling and any additioal help they might need to understand the FA process and re-payment of loans.
We have a student default specialist that meets with every student
We have a informative FA department, our advisors share a realist outlook and discourage students from taking unneccessary loans.Financial aid counciling is done pre- entry and at exit.
I think that it is important that financial aid completely explains the student loan debt, student loan repayment and the fact that if the student drops out of school and does not complete the degree, they not only have debt but also no degree to help them obtain employment.
I feel that it is very important for the student to be counseled before entering and upon graduating from an institution on their student loans.In the economy that we live in this is crucial and vital to be a reputable school to attend.
The school works hard to identify at risk students and provide access to tutoring services and assistance to overcome obstacles to attendance. Just as the presentation stated those students who fail to complete their program are at a higher risk for default.
A genuine counseling from the outset. Ensure the student has all the information need to make an informed decision.
I believe that schools should focus more on their financial aid departments and that students should be required to take a class on loan default rates and budgeting. Students should be held more accountable for their actions as well, the schools have very little control over a student paying back loan debt, once they have graduated.
I agree that initial discussions are important. Our Financial Planning Coordinators discuss this w/ students.
Students should be informed how important it is to start paying their loans back after graduation. It is our job to help educate them on this information.
We have a Default Advisor who contacts the students and helps them understand the loan process and the importance of paying back their loans.
Educate the students on their financial obligations. We do individual exit counseling with our students, have each student set up an account with their servicer, get as many references from the student as possible and make sure all the student's information is up to date and accurate. We have also begun financial literacy training. We have a speaker come in for orientation and toward the end of the student's program when they meet with our career development team.
Having workshops set up towards the end of the students education to insure they know what to expect when they finish school. It will help remind them and help them set up a strategy for when they are out in the working world.
Hard to say anything that hasnt been said..but just to be deligent about consistently reminding students about their current and future F/A obligations and what will be expected of them. Whether it is in the Monthly newsletter, montly emails to students portals, and/or standard mail.
I think the most important thing is to make sure that student's have realistic expectations. They need to be informaed of exactly what they will owe and have it broken down for them how much of that is in loans and what their payments will be like.
Provide the students with what their repayment responsibilities will be six months after leaving school. Try and give them actual numbers of what types of payments they will have to make, both amount and how frequently the payments will have to be made.
I think most students realize that they will have to repay their loans but many may not have a clear understanding of what the actual payments are going to be and how often they will have to pay them once leaving/finishing.
I think the most important thing an institution can do to prevent default is educate their students about the process and what to expect from day one through graduation. The more they know and understand their options the better the results. I also think the idea of having seminars with students so that their questions can be answered is a great idea.
Default awareness presented to the student and successful strategies that can be initiated to lessen the likelihood of default occuring.
