It is a good idea to have default prevention specialists to assist educate the students before going into repayment. Our institution has implemented a default prevention team to help the students.
I believe that these are helpful guidelines any school should follow in order for every student to be successful after graduation.
Make sure that a student understands the entire process and what they are obligated to before starting school.
Make sure the prospect student is well aware of all neccessary requirements during enrollment.
Make sure students fully understand what they are doing and why they are doing it. Set up the right expectation for the student.
By providing financial aid assistant to student will provide awareness to students on their loan debt ratio
Michelle,
The total cost of the program should be listed on the enrollment agreement. Information about loan repayments should be part of financial aid entrance and exit counseling.
John Ware
Explain and inform students upon completion of application what the financial aid appoitment consists of and the consequences of defaulting on a loan.
I feel it is important that the student knows that defaulted student loans will stay with them for the rest of their lives - that defaulted student loans will keep them from getting jobs and will hurt their credit score.
provide financial information and have brocher available
We have a few things in place to help manage the default rates of our students. One is that we have counseling in place witth each student to ensure their understanding as to what they are getting in to. Secondly we follow up with our students as to why they have chosen to cease their studies. This allows us to address any issues that may arise from their withdrawl and to reduce the defaults. thirdly, we have a department that contacts our students that have a potential of defaulting on theur loans. They counsel the borrow as to what their options are prior to defaulting on their loans.
I think the best thing a school can do to help prevent default of student loans is to have workshops available to students on the importance of paying back your debt. Many students don't know or don't realize that when you fail to pay back you loans, it can greatly affect many other parts of you financial life.
The financial aid department should give them complete information about everything involving financial aid
The most important thing i would say is the exit interview. To insure that the student can a someone to contact once the have graduated in there program of study.
Explain during their financial aid appoitment the consequences of default. This happens before they are registered for their classes.
Provide detailed info regarding student loans and the repayment options as well as maintaining communication with the lender.
Maybe the school should make the student aware that total cost of the program.. The payment plan and when the loans will go back into repayment.
A healthy relationship with a default prevention representative from the time the loan was procured would be the first step, understanding how the loan matures and the payment process could further prevent defaulted loans in the future. Adding a prevention/collection team has made the process more transparent for the student before they hit any repayment stage.
I think that the most important thing a school can do is make sure students are prepared when going into the work force and as they get close to graduation by a Financial aid person regarding budget and repayment.
Some strategies may be to increase our career services department and efforts to help our students be gainfully employed so that default loan payments would not be an option.
We can make sure the student is commited and in the right program. Making sure they are qualified and meet the minimum standards. Also following up with the student and helping them when they have problems.
