Prevent Defaults and Encourage Debt Management on Campus

Financial aid professionals are in an ideal position to help at-risk borrowers understand the importance of repaying student loan and consumer debt. You can increase student retention and reduce student loan delinquency and default through a variety of techniques.

Collaborate with Business Partners

Communicate with Students

  • Set up an orientation session or course for new students, covering topics such as study skills, how to be a successful student, time management, and resources on campus
  • Require students on academic probation and re-entering students to complete a course which includes study skills and time management
  • Hire a dedicated default prevention staff member – borrowers need personal contact
  • Work with borrowers after they leave school (make phone calls or send letters/e-mail to borrowers who are in grace or who already are delinquent)
  • Monitor potential withdrawals and advise these students about their options
  • Provide a calendar to students exiting your school – after you’ve marked their repayment start date on it
  • Review your portfolio to identify students at high risk for default (if resources are limited, focus efforts on at-risk students)
  • Start a peer counseling group on campus

Counsel Students Often and in a Variety of Ways

  • Provide debt management counseling to students (use Mapping Your Future’s Financial Literacy counseling, Grace Period Repayment counseling, or money management content to start)

Implement Financial Literacy Programs

  • Get financial aid and money management on the curriculum for classes that have a financial component – even if only for one hour each term
  • Adopt a financial literacy program that addresses debt management issues beyond student loans including budgetinghandling credit cards, and choosing insurance
  • Use Mapping Your Future’s calculators to help borrowers estimate their payments, create a budget, etc.
  • Use interactive tools to reinforce students’ knowledge about student loan borrowing and financial literacy

Use Technology in Creative Ways

  • Allow students to keep their school e-mail addresses after the leave or graduate so you have an easy way to reach them to offer assistance

Leverage Training and Tools to Help You

  • Attend default aversion and financial literacy workshops when offered
  • View the Webinars On-Demand, which include past default prevention webinars
  • Consider using the money management flyer that includes tips for managing student loan debt
  • Subscribe to the Mapping Your Future Higher Ed News to receive updated information and ideas about default prevention and other higher education-related topics
  • Share your successes with your peers
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