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

• Implement campus partnerships to identify and assist at-risk students
• Develop resources and referral list for students with financial trouble (e.g., consumer credit counseling services, Federal Trade Commission, etc.)
• Use resources on Mapping Your Future

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 budgeting, handling credit cards, and choosing insurance
• Use interactive tools, such as Mapping Your Future's educational games, to reinforce students' knowledge about student loan borrowing and financial literacy
• Use Mapping Your Future's calculators to help borrowers estimate their payments, create a budget, etc.

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