Tips for Success
Before Repayment
- Educate borrowers on responsible borrowing and money management. Free tools, such as YouCanDealWithIt.com, will help in educating borrowers.
- Instruct borrowers to set up an online account with their servicer while they are still on campus (at first disbursement or entrance/exit counseling).
- Encourage reasonable interest/principal payments while borrowers are in school and in grace to establish a payment history and relationship with their servicer.
- Send borrowers customized repayment plan information at exit counseling based on their outstanding balance.
Did you know?
Approximately half of all delinquent borrowers have been delinquent in the past.
During Repayment
- Important: Report borrower enrollment through the National Student Clearinghouse (NSC) or through National Student Loan Data System (NSLDS). There is a direct link between loan default and untimely or inaccurate enrollment reporting.
- Offer job placement assistance to all borrowers to help ensure that they are able to make loan payments. Offer this assistance to your withdrawn borrowers as well.
- Review "at risk" groups for your institution. Use historical data to determine which borrowers at your school are at the highest risk of default (i.e., withdrawals, borrowers taking a particular course of study, previously delinquent borrowers). Monitor these borrowers more carefully. Contact these borrowers more frequently. You may be able to integrate this with staff at your institution focused on retention.
Did you know?
Most of the delinquent borrowers we speak with become current within 30 days of the call. Encouraging your borrowers at exit counseling to stay in touch with their servicer and keep their contact information up-to-date is crucial to successful repayment.
After Default
- With your draft Cohort Default Rate (provided in February), take the opportunity to identify and correct any inaccuracies by submitting an incorrect data challenge. Focus specifically on the date the borrower entered repayment.
- Submit appeals within 45 days of receiving your draft rate.
- To appeal your official Cohort Default Rate, submit a signed letter to the U.S. Department of Education (ED) on your school's letterhead that includes your Office of Postsecondary Education identification (OPE ID).