STUDENT FINANCE
“Tey spoke with me on a personal level, and
were willing to act as an ‘interpreter’ when I contacted my loan servicers,” explained Victor. “It felt like they (HigherEDGE representatives) were trying to help keep me from making financial mistakes.”
CAMPUS-LEVEL EFFORTS TO CURB BORROWER DEFAULT A school’s efforts to curb bad repayment behavior have historically fallen to a single set of team members in one location–the financial aid office. However, the price for high CDRs translates into some serious consequences for the entire campus. Institutions have to make certain their former student borrowers remain in good standing so that current students have access to federal aid.
There’s no disputing that the greatest advantage an individual can gain in a highly competitive global economy is to obtain some form of college degree or certificate.
As Texas State Technical College began to receive
data on projected default rates, Marcus Balch, Associate Vice President of Enrollment Services, described how his staff knew the campus needed to act quickly to get support for any initiatives to promote student loan counseling. Te school is now using a variety of meth- ods, including TG’s HigherEDGE Default Aversion Solutions, in order to help students understand the loan process and keep borrowers aware of their repayment obligations. “After attending a TG training conference ses- sion on default prevention measures, we immediately assembled a committee to address our default issues,” said Balch. “We chose to include various staff members from the campus, and now campus-wide discussions are
helping us to meet the challenges ahead.” TSTC has committed to doing more early aware- ness education with students while they are on campus, including incorporating loan counseling into new student orientation. Te school established a full-time Money Management Center, and financial aid staff advise students in some first semester classes on the appropriate amount of loans needed to meet their financial obligations each semester. Te financial office has also adopted new ways in which students and bor- rowers are more likely to receive information, whether by phone, email or social media. “It has gone from a financial aid initiative to a
campus initiative. Of course, possible sanctions played a big role in getting the attention of the campus, but ultimately, faculty and staff now better understand what lies ahead of a student who chooses to borrow for school,” Balch added.
WORKING TOGETHER TO HELP LOWER DEFAULT With stricter federal policies in place regarding CDRs, schools are spending significant time and resources to minimize their student loan default. For example, Balch talked about TSTC’s work to restructure staff respon- sibilities in student loan counseling in order to spend more time with students prior to them applying for and accepting loans. Te school has been using High- erEDGE Default Aversion Solutions to communicate to borrowers early about the risks of delinquency in the hopes that it helps them stay on track for successful repayment. “We’re learning through continued conversations
with TG how to direct our resources moving forward,” Balch said. “We’ll also continue to enlist help at the campus level through our default team, and create a sense of urgency among students, faculty and staff to keep defaults to a minimum.”
“Connections with students and borrowers must be multi-faceted. Schools, in order to be effective in their default prevention efforts, must take the lead,” explained Brody. “Te more avenues to contact a bor- rower once they leave campus, the more likely a school can effectively manage their delinquency rates, and ultimately their default rates.” Tere’s no disputing that the greatest advantage an individual can gain in a highly competitive glob-
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