Default Prevention Training

2. You�ll learn how to� assess the role of a default manager calculate cohort default rates implement a default prevention plan find resources to help you and your students Lets get into the actual sample plan. Like I said, I learn something new every day, so please feel free to share your thoughts and experiences!Lets get into the actual sample plan. Like I said, I learn something new every day, so please feel free to share your thoughts and experiences!

3. What is the role of a default Manager?

4. Default manager�s role varies by school general responsibilities include: teaching enrolled students financial literacy skills to help them avoid delinquency and default helping former students resolve student loan delinquencies Definitely varies by school. Some are dedicated solely to default prevention, while others have that added as �other duties assigned.� I�d like to hear from the group as to what your ideas of a DM�s responsibilities include. In a nutshell, it�s educating the borrower. Thoroughly educating them on the various options available to them once they enter repayment and also really emphasizing the very serious consequences of default.Definitely varies by school. Some are dedicated solely to default prevention, while others have that added as �other duties assigned.� I�d like to hear from the group as to what your ideas of a DM�s responsibilities include. In a nutshell, it�s educating the borrower. Thoroughly educating them on the various options available to them once they enter repayment and also really emphasizing the very serious consequences of default.

5. Result of default manager�s efforts higher student retention lower cohort default rates taxpayers save program integrity is reinforced you feel good about making a difference

6. Cohort default rate What is a cohort default rate (CDR)? a percentage of students in a cohort year who default in the year they enter repayment or the following year fiscal year is October 1 � September 30 Does this confuse anyone?Does this confuse anyone?

7. CDR calculation numerator number of borrowers who entered repayment and defaulted in the cohort fiscal year denominator number of borrowers who entered repayment in the cohort fiscal year

8. CDR example A degree-granting school had 90 borrowers enter repayment in the cohort fiscal year. Of those, 8 borrowers defaulted in the cohort default period. 8 defaulted borrowers 90 total borrowers in repayment = 8.8% cohort Ask schools what they are doing in terms of default prevention�..but play with the number and see what only 2 � 3 defaulted borrowers would do to their rate � be proactive, not reactive.Ask schools what they are doing in terms of default prevention�..but play with the number and see what only 2 � 3 defaulted borrowers would do to their rate � be proactive, not reactive.

9. Cohort resource guide ED�s Cohort Default Rate Guide http://ifap.ed.gov/DefaultManagement/DefaultMangement.html A fantastic resource. Gives all kinds of information on the cohort default rate � how to calculate, impact on school, how to challenge. Speaking of challenging your CDR, NSLP will be offering a webcast on this in late January/early February I believe, so be on the lookout for our announcement. Print reference guideA fantastic resource. Gives all kinds of information on the cohort default rate � how to calculate, impact on school, how to challenge. Speaking of challenging your CDR, NSLP will be offering a webcast on this in late January/early February I believe, so be on the lookout for our announcement. Print reference guide

10. Let�s make a plan!

11. Default prevention plan perform activities to meet 34 CFR 668.14(b)(15) requirements conduct entrance counseling provide financial literacy information to borrowers communicate across campus conduct exit counseling practice timely and accurate enrollment reporting review Date Entered Repayment report resolve delinquency review the Loan Record Detail report analyze default data, identify defaulter characteristics Perform, conduct, provide, review, analyze � all these things require time � something that I�m sure most of you are severely lacking! These are suggested activities other than entrance and exit counseling. If you have a high withdrawal right focus on Entrance Counseling and the program. Exit Counseling in person that is engaging is best. Move the important information up front. Do you really need an hour? Default consequences, visual and relate to �testimony. Utilize your partners with counseling, review their presentation. You have another voice stating the same thing.Perform, conduct, provide, review, analyze � all these things require time � something that I�m sure most of you are severely lacking! These are suggested activities other than entrance and exit counseling. If you have a high withdrawal right focus on Entrance Counseling and the program. Exit Counseling in person that is engaging is best. Move the important information up front. Do you really need an hour? Default consequences, visual and relate to �testimony. Utilize your partners with counseling, review their presentation. You have another voice stating the same thing.

12. Entrance counseling first time borrowers must receive entrance counseling additional school efforts helpful publications www.mapping-your-future.org With entrance counseling, if your default rate is low, MYF can be a fantastic, time saving tool. However, if your default rate is high, face-to-face counseling has been proven to be more effective. I know of a school who asks her partners to do group counseling (like a lot of schools do). After the group counseling, the students are then required to go to the computer lab and do MYF. She has a zero default rate. Not everyone is able to do this and I realize that, but it�s a thought. Also, UTILIZE YOUR PARTNERS. Make sure that their presentations send a powerful message to the students � not just satisfy federal requirements! If you�re just wanting to meet requirements, chances are good that you won�t see a decrease in your default rate. Also, if you have a high withdrawal rate, beef up your entrance counseling. If you notice that one specific program has a higher drop rate, do one-on-one counseling. Once the student withdraws, you have a much less change of getting them to respond. Another proven fact is that those who do not complete their education have a higher rate of default. No degree, no repay. With entrance counseling, if your default rate is low, MYF can be a fantastic, time saving tool. However, if your default rate is high, face-to-face counseling has been proven to be more effective. I know of a school who asks her partners to do group counseling (like a lot of schools do). After the group counseling, the students are then required to go to the computer lab and do MYF. She has a zero default rate. Not everyone is able to do this and I realize that, but it�s a thought. Also, UTILIZE YOUR PARTNERS. Make sure that their presentations send a powerful message to the students � not just satisfy federal requirements! If you�re just wanting to meet requirements, chances are good that you won�t see a decrease in your default rate. Also, if you have a high withdrawal rate, beef up your entrance counseling. If you notice that one specific program has a higher drop rate, do one-on-one counseling. Once the student withdraws, you have a much less change of getting them to respond. Another proven fact is that those who do not complete their education have a higher rate of default. No degree, no repay.

13. Financial literacy refer to Financial Literacy Education brochure I have given you all a brochure which lists all of our financial literacy presentations that are available to NSLP customers. This is a proactive approach. Lets teach them how to manage money. Lets get them excited about managing money. Default management is reactive. We are reacting to the fact that the borrower has decided not to repay their loan. If you have any questions pertaining to the brochure, you can talk to your rep who can give you more details.I have given you all a brochure which lists all of our financial literacy presentations that are available to NSLP customers. This is a proactive approach. Lets teach them how to manage money. Lets get them excited about managing money. Default management is reactive. We are reacting to the fact that the borrower has decided not to repay their loan. If you have any questions pertaining to the brochure, you can talk to your rep who can give you more details.

14. Across-campus communication How is communication between offices on your campus? What departments should be involved in default prevention and management? ask questions of other departments default prevention and management isn�t the responsibility of a single office review academic progress and enrollment status timely and accurate communication What has been your experience in across campus communication? Any obstacles or barriers? How have you overcome those? Any group ideas?What has been your experience in across campus communication? Any obstacles or barriers? How have you overcome those? Any group ideas?

15. Exit counseling in-depth focus on repayment plans and choices opportunity to clarify student loan information additional school efforts helpful publications www.mapping-your-future.org COMMUNICATE, COMMUNICATE, COMMUNICATE! How do you think exit counseling should differ from entrance counseling? Utilize your partners, let them do the work for you, sends a message to students that there are more people involved in this than the friendly face who gives you a loan. Review what your partners do ahead of time so that they send a powerful message. What is the attention span of a student who is in a session they don�t want to be in�.maybe 15 mins tops. Move most important information to the top of the presentation�.repayment options and consequences of default. Tell them story about a student who has defaulted and what happened to them. Joe � call from state rep about Joe, who did not know he had a loan he had to repay after 20 yrs. Joe has enough delinquency letters to paper his living room or he�s moved multiple times and hasn�t received the letters. Loan amt has tripled and he is trying to get a house, Uncle Sam�s money and he will get to you. Joe won�t see his taxes for many years, wages are being garnished, can�t buy a house,etc. You are done with school, your loan in in repayment, you don�t have a job � what do you do�call your lender about forebearance, deferment, etc. When advertising exit cslg�should make it mandatory, don�t comment on federal regulations on posters, don�t ask them to �try to come by� for the session. Be stern with them and require them to show up, doing them a favor in the long run.COMMUNICATE, COMMUNICATE, COMMUNICATE! How do you think exit counseling should differ from entrance counseling? Utilize your partners, let them do the work for you, sends a message to students that there are more people involved in this than the friendly face who gives you a loan. Review what your partners do ahead of time so that they send a powerful message. What is the attention span of a student who is in a session they don�t want to be in�.maybe 15 mins tops. Move most important information to the top of the presentation�.repayment options and consequences of default. Tell them story about a student who has defaulted and what happened to them. Joe � call from state rep about Joe, who did not know he had a loan he had to repay after 20 yrs. Joe has enough delinquency letters to paper his living room or he�s moved multiple times and hasn�t received the letters. Loan amt has tripled and he is trying to get a house, Uncle Sam�s money and he will get to you. Joe won�t see his taxes for many years, wages are being garnished, can�t buy a house,etc. You are done with school, your loan in in repayment, you don�t have a job � what do you do�call your lender about forebearance, deferment, etc. When advertising exit cslg�should make it mandatory, don�t comment on federal regulations on posters, don�t ask them to �try to come by� for the session. Be stern with them and require them to show up, doing them a favor in the long run.

16. Enrollment reporting How often do you report? Do you use the Clearinghouse? Timeliness and accuracy are crucial! Reporting is a big deal! Timeliness and accuracy are crucial because lender/servicer/guarantor activities are all based on the information that you provide us! If we have erroneous information that is either inaccurate or not reported timely then that reduces your abiliity to manage defaults.Reporting is a big deal! Timeliness and accuracy are crucial because lender/servicer/guarantor activities are all based on the information that you provide us! If we have erroneous information that is either inaccurate or not reported timely then that reduces your abiliity to manage defaults.

17. NSLDS Date Entered Repayment (DER) report review bi-monthly compare to institutional date reflected in cohort default rate Some schools need to pay close attention to this report � if information is incorrect, everyone�s efforts are ineffective. �reflected in cohort default rate� � if this report is incorrect compared to institutional data, then they might not even be in that cohort year and may be affecting the cohort rate negativelySome schools need to pay close attention to this report � if information is incorrect, everyone�s efforts are ineffective. �reflected in cohort default rate� � if this report is incorrect compared to institutional data, then they might not even be in that cohort year and may be affecting the cohort rate negatively

18. Delinquency resolution Default Aversion Assistance Report contact loan servicer call students who are more than xxx days delinquent Extended Exit Counseling Default Rescue Unit How many currently use DAAR? Such an easy report. I know you hear �user friendly� all the time but seriously, I�m SO technically challenged and I can use it! It allows you to sort data by cohort year, you can print letters and mailing labels, updated weekly � If you want more information, contact your rep. I know that all GA�s offer a similar product. When you are looking at the report and you see 400 students. Does that discourage you? Do you think �How am I going to call all of these students AND get my regular job done?� I don�t blame you � I would freak too and see no light at the end of the tunnel. I�m here to give you light! When working these reports, start with the accounts that are seriously delinquent � over 140 days of delinquency. We cure the vast amount of delinquencies between days 60 and 135. We have a guide to Effectively Using DAAR that really goes into detail. Use your guarantor to work the more recent delinquencies and you work on the worst. Extended Exit Counseling is a service provided by NSLP. We essentially bridge the gap between grace begin and repayment begin�send out emails to students, gentle reminder that entering repayment soon, resources and options. NSLP does this but schools can do this as well�.remind them at a certain period in time that there repayment will start soon and what their options are. Default Rescue: An exclusive NSLP service but others could do as well. Once a claim has been submitted, we make final attempts to resolve the delinquency before � last resort � paying the claim. 60-120 Lender to Guanteor report. We resolve the majority of those 135 higher then 135 through 270.How many currently use DAAR? Such an easy report. I know you hear �user friendly� all the time but seriously, I�m SO technically challenged and I can use it! It allows you to sort data by cohort year, you can print letters and mailing labels, updated weekly � If you want more information, contact your rep. I know that all GA�s offer a similar product. When you are looking at the report and you see 400 students. Does that discourage you? Do you think �How am I going to call all of these students AND get my regular job done?� I don�t blame you � I would freak too and see no light at the end of the tunnel. I�m here to give you light! When working these reports, start with the accounts that are seriously delinquent � over 140 days of delinquency. We cure the vast amount of delinquencies between days 60 and 135. We have a guide to Effectively Using DAAR that really goes into detail. Use your guarantor to work the more recent delinquencies and you work on the worst. Extended Exit Counseling is a service provided by NSLP. We essentially bridge the gap between grace begin and repayment begin�send out emails to students, gentle reminder that entering repayment soon, resources and options. NSLP does this but schools can do this as well�.remind them at a certain period in time that there repayment will start soon and what their options are. Default Rescue: An exclusive NSLP service but others could do as well. Once a claim has been submitted, we make final attempts to resolve the delinquency before � last resort � paying the claim. 60-120 Lender to Guanteor report. We resolve the majority of those 135 higher then 135 through 270.

19. Defaulted loan data analysis Do you need to modify your default prevention activities? How often will you review your process and measure your progress?

20. Resources NSLP handouts Loan Education Products Financial Management Tools Money Management Tips Money Management Counseling Loan Consolidation Pros and Cons Available free to you. Briefly describe each.Available free to you. Briefly describe each.

21. Resources NSLP handouts Military Mobilization Fact Sheet Default Prevention and Debt Management Loan Summary Extended Exit Counseling DAAR DAAR. Default Aversion Assistance Request/ReportDAAR. Default Aversion Assistance Request/Report

22. Resources NSLP forms, brochures, presentations entrance/exit counseling Find your student loans online How can a phone call make a difference? How will I repay my student loan? What if I can�t make my student loan payment? Am I eligible for teacher loan forgiveness? financial literacy education presentations

23. Questions

24. For more information National Student Loan Program 1300 �O� Street Lincoln, NE 68508 Brenda Vaughn (800) 735-8778, ext. 6874 brendav@nslp.org