Myles,
I recall completing my exit interview online, and noting how little help the quiz would have been if I did not have a background in loan servicing and financial aid. Online tools may offer helpful information, but it is so easy for students to ignore what they have learned- it just does not feel ‘real’ because the student is not engaged in the experience. By going over questions in detail with the student, you are making a huge impact on their ability to retain and use the information.
I also like your point about asking questions. Too often, we heap information and handouts on the student, but do not ask enough questions that would prove they have absorbed and can apply the information we provide.
Kellee Gunderson
We use quite a few strategies. We start counseling from the entrance interview to the exit and beyond.
Every time we meet with a student, we bring up their financial plan. We ask questions and allow the student to ask questions, this helps to ensure they understand their responsibility.
Even during Career Placement, we ask how their payments are going, did they receive their loan paperwork and payment information.
We also use the Stafford Loan Test each time a student requests a "stipend" or "refund" for remaining credits on their account. With this, we measure their knowledge of the loan process and what can happen if the loan(s) are defaulted. If the student answers something incorrectly, we go over the question and answer in detail to ensure they understand the correct answer.
It is great that your team follows-up with students at the end of grace, as well as when a delinquency occurs. Students have many options- lower payment plans and various deferments- so there is no reason to default. Staying in contact with them and helping them understand how to deal with financial difficulties is vitally important.
Nichelle,
Reminders during the grace period are a good practice to have so students always have notice of their upcoming payment. If you are able to check in with them right before the first payment is due you can find out if they are ok to make that payment on time or if they are in a situation where they need to try and lower payments of defer them for a few months. If you can assist them from going delinquent on that first payment you will have shown them the options they have and will hopefully keep them on track for the life of the loan.
Cheryl Kesson
We not only use our exit couseling to assist the student with avoiding default and delinquency, we also have an awesome Financial Literacy team that tracks the students when they leave and notify them when their grace period is over and reaches out if they look to be going toward default to assist with completing necessary documents to defer the loans or place them in forbearance.
Great point! Students need to know how to contact their loan servicers, and the loan servicer needs to know how to contact the student. For example, if the loan company needs to request annual income verification to keep the student on a lower payment plan, it is important for them to have updated contact information. Otherwise, the lower payment schedule may be revoked and the student will struggle with higher monthly obligations.
We also find it helpful to teach students how to access the NSLDS website, particularly if they have loans from previous schools. Students with loans held by more than one company can be easily confused- sending payments to the wrong entity, submitting forbearance requests to only one company, or losing track of loans that are sold or transferred.
Jeffery,
When student leave school they should be given all the information to their loan servicer. It's a good idea to take a few minutes to make sure they are signed up for the servicer's website and are comfortable navigating through it. Take some time to show them where they would make a payment, update contact information and if needed apply for forbearance or deferment. Also it can be helpful to let the student know if they are ever unsure about calling the servicer on their own that they can contact you to do a 3-way call with them to help answer any questions. Sometimes, especially if you are delinquent, a call to the loan servicer can be intimidating.
Cheryl Kesson
The key in helping borrowers avoid delinquency is informing them to stay in constant contact with the loan company. Constant contact is necessary to give the loan company information on the students individual situation and helping them to plan a payment option going foward
I am glad that your third-party has been an effective partner!
It is important for schools that outsource some or all of their default prevention to make this relationship clear to students. Introducing the third-party during entrance and exit counseling, and throughout enrollment, will help students consider them to be trusted members of your team. Also, it is important that all the work your institution does to update student information and obtain new data is shared with the third party regularly, so that everyone’s efforts can be most effective.
Karolina,
The combined efforts of using a third party and still making contact from the school is the best way to reduce and maintain rates. There will always be students who are more comfortable speaking with someone they know from the school while others may respond better to a third party. This combined approach should help you reach and assist more students.
Cheryl Kesson
At my institution we contract with a third party to help manage our delinquent students. They contact us for reference information and they then reach out to the student. At the same time we also attempt to reach out to the student. By multiple people reaching out we have been able to reduce our default number consistently over the past 3 years. The added effort by the third party is really paying off.
Todd,
Reaching out to students during grace is crucial, and scheduling calls both early and late in the grace period is an excellent idea. When students first leave school, they can begin planning and budgeting, and as the end of grace nears they will have a more realistic estimate of how their career, financial, and family situations will impact their ability to submit regular payments.
Kellee Gunderson
We conduct grace calls at one month and six months from the date the student leaves the school. Also during our exit we inform them that they are always welcome to come in at any point or call if they have any questions or concerns.
Sharita,
I think it is great that you provide a class in addition the online exit counseling. It is a good opportunity to reinforce what they have learned online and provides the student a chance to ask questions and clarify any points they may still be unsure of.
Ensuring the students know how to access NSLDS before they leave school has become more important than ever. With so many loan transfers happening it can be hard to keep track of things so providing them the tools to keep on top of things is critical.
Cheryl Kesson
Student do exit interviews on-line they are given exit counseling book also I do a class and we discuss loans, repayment, repayment plans, deferments, I also encourage them to keep in contact with lender if address or phone # change and to regularly check the status of financial aid on NSLDS.GOV
Samantha,
Reminders during the grace period are critical!
We can provide excellent information in the exit interview, but in the intervening months students may still forget that repayment is looming. When the end of grace approaches, it is good to touch base with students regarding their job and family situations.
Kellee Gunderson
We track the students who have student loans and give them reminders about when their repayment will start and follow up. This is an effective strategy because it holds the student accountable.
Rosezza,
I think it's great you have a team that can reach out to students who have fallen behind. Getting in touch with them early in their delinquency and advising them of their options if they are unable to make a payment helps establish a strong relationship and show that you are there to help them. A friendly helpful approach in their time of need may help the student be more proactive in reaching out for assistance in the future should they again encounter trouble making payments.
Cheryl Kesson
The FA department holds monthly exits counseling and we also have a default prevention team that reaches out to all students that have falling behind on their payments.
Daniela,
It's so important for the school to remain inolved even when using a third party servicer. Having the students log-in and view NSLDS loan history is a great way to make them aware of what they have and where they can go to find information in the future.
I think introducing the students to your third party servicer during their exit interview is key to them being receptive to communication from the company in the future. We are so often bombarded with calls and offers from companies that if something is unfamiliar it can easily be ignored and you really want to be sure your students do not miss out on benefifical information. Great job!
Cheryl Kesson
