Housekeeping. Tactics & Tools for Student Retention & Default Prevention. Presenters. February and March, 2010

Transcription

1 Housekeeping Tactics & Tools for Student Retention & Default Prevention Join the audio portion of the webinar: (888) access code # (your line will be muted automatically) All lines muted During Q&A, unmute by pressing *6 (mute again when done by pressing *6 again) Don t place call on hold Copy of presentation: mappingyourfuture.org/downloads/ DefaultPreventionSchools.pdf 2 Presenters Corena Benjamin Montana Guaranteed Student Loan Program Regina Venson Georgia Student Finance Commission CariAnne Behr Mapping Your Future, Inc. Introduction 3 Mapping Your Future, Inc. 1

2 Mission Mapping Your Future s mission is to enable individuals to achieve life long success by empowering schools, students, & families with free, web based career, college, financial aid, & financial literacy information & services. Vision To be the leading public service, collaborative provider of free information & services for schools & for students & families as they consider careers, college, financial aid, & financial literacy options. Sponsors Sponsors American Education Services (AES) a division of PHEAA American Student Assistance College Assist ECMC EDFUND/California Student Aid Commission Finance Authority of Maine (FAME) Florida Office of Student Financial Assistance (OSFA) Georgia Student Finance Commission (GSFC) Great Lakes Higher Education Guaranty Corporation Illinois Student Assistance Commission (ISAC) Illinois Student Assistance Commission (ISAC) Iowa College Student Aid Commission Kentucky Higher Education Assistance Authority Louisiana Office of Student Financial Assistance (OSFA) Michigan Higher Education Assistance Authority Michigan Guaranty Agency Missouri Department of Higher Education/Missouri DHE Student Loan Program Montana Guaranteed Student Loan Program National Student Loan Program 7 New Hampshire Higher Education Assistance Foundation (NHHEAF) New Jersey Higher Education Assistance Foundation (HESAA) New Mexico Student Loan Guarantee Corporation (NMSLGC) New York State Higher Education Services Corporation (HESC) North Carolina State Education Assistance Authority (NCSEAA) Northwest Education Loan Association (NELA) Oklahoma Guaranteed Student Loan Program Rhode Island Higher Education Assistance Authority (RIHEAA) South Carolina Student Loan Corporation (SCSLC) Student Loan Guarantee Foundation of Arkansas (SLGFA) Student Loans of North Dakota (SLND) Tennessee Student Assistance Corporation (TSAC) TG United Student Aid (USA) Fund, Inc. Utah Higher Education Assistance Authority (UHEAA) Vermont Student Assistance Corporation (VSAC) 8 Mapping Your Future, Inc. 2

3 Friends Access Group Association of Texas Lenders for Education (ATLE) Chase Commerce Bank Credit Union Student Choice Edfinanciali Services IDAPP Key Bank Michigan Higher Education Student Loan Authority MOHELA Nelnet New Mexico Educational Assistance Foundation (NMEAF) Panhandle Plains Higher Education Authority (PPHEA) Regions Bank Rhode Island Student Loan Authority SallieMae Student Assistance Foundation of Montana Student Loan Finance Corporation (SLFC) Studentloans.com SunTrust Bank U.S. Bank Wachovia Education Finance Wells Fargo Western States Learning Corporation Default rates and consequences 9 CDR calculation Predictions Cohort year Numerator Number of borrowers in denominator who defaulted or met other specified condition during the cohort default period Denominator Number of borrowers who enter into repayment during cohort fiscal year. Borrower enters repayment (denominator) Borrower defaults (numerator) Length of cohort period /01/ /30/ /01/ /30/ years /01/ /30/ /01/ /30/ years First 3 year draft rate will be released February year rate will be used for sanctions until 3 year is published. 12 School type 2 year rate 3 year rate 4 year Private Public For profit to 3 year Private Public For profit Less than 2 year Private Public For profit Source: New America Foundation Mapping Your Future, Inc. 3

4 Consequences Lose exemption from multiple and delayed disbursement requirements if CDR 10 percent (15 percent threshold effective for loans disbursed on/after October 1, 2011) Loss of eligibility to participate in programs if CDR 25 percent (30 percent beginning FY2012) Default prevention plan if CDR 30 percent effective FY2012 Default prevention plans Must establish a task force to prepare a plan: Identify causing factors Establish measurable objectives & steps to improve rate Specify actions to improve repayment, including repayment counseling Must submit plan to the Department If exceed CDR for 2 consecutive years, task force must revise plan Student success Tactics and tools Offer orientation session/course for new students Study skills How to be successful Time management Money management Resources on campus Study skills & time management for students on academic probation or re entering 16 Mapping Your Future, Inc. 4

5 Success in college guide For prospective & current college students Topics: Goals & priorities Academically & financial preparation Time & money management Getting advice Getting around roadblocks Money management Financial aid & money management curriculum for classes with a financial component Implement financial literacy education program Start a peer financial literacy program Develop referral list for students with financial concerns (e.g., consumer credit counseling services) Financial literacy counseling 12 steps to financial success Accountability & responsibility Setting & planning goals Understanding income Checking accounts Savings accounts Creating a budget Mapping Your Future, Inc. 5

6 12 steps to financial success Demo session 21 Smart borrowing Managing credit cards wisely Credit reports Identity theft Tax liability Getting help Counseling type Texas MYF Demo School Enter false student information mappingyourfuture.org/downloads/financialliteracyguide.pdf mappingyourfuture.org See it for yourself complete Online Student Loan Counseling Budget Tips and tools for starting a budget mappingyourfuture.org/money/budget.htm Budget calculator Financial literacy counseling Texas MYF Demo School Mapping Your Future, Inc. 6

7 Manage checking account Save money Suggestions mappingyourfuture.org/money/save.htm Calculator Understand credit Financial fitness quiz Use credit cards wisely mappingyourfuture.org/money/creditcards.htm Review & understand credit reports mappingyourfuture.org/money/creditreport.htm Mapping Your Future, Inc. 7

8 Money management flyer Smart loan decisions Borrow only what is needed Review loan options while continuing education Avoid default Alternative repayment plans Deferments & forbearance Follow steps for managing student loan debt Borrowing calculators Repayment plans Mapping Your Future, Inc. 8

9 Repayment plans Deferments Guidance for managing loans Loan counseling Use effective loan counseling Interactive Test component Customized Require borrowers to complete entrance interview each year Mapping Your Future, Inc. 9

10 Stafford entrance (English and Spanish) Stafford exit (English and Spanish) Perkins entrance Counseling sessions Nursing Student Loan exit Health Professions entrance Health Professions exit Grad PLUS entrance Grad PLUS exit Perkins exit Stafford and Grad PLUS Stafford and Perkins combined entrance combined entrance Stafford and Grad PLUS Stafford and Perkins combined exit combined exit TEACH Grant exit Nursing Student Loan entrance Financial literacy Features Neutral Instructions Loan types Limits Budget calculator Borrow conservatively Customization Debt/salary wizard Demo counseling session Counseling type Texas MYF Demo School Parents Empower parents to help students make money management decisions Borrow only what need Use credit cards wisely Track checking account; spending Prevent identify theft Orientation; family day Enter false student information Mapping Your Future, Inc. 10

11 41 Outreach Develop campus partnerships to identify & assist at risk students Work with borrowers after they leave school (phone calls, letters, e mail if in grace or delinquent) Monitor potential withdrawals; advise students Review portfolio to identify high risk students Connect with students using social networking tools Social networking Facebook More than 350 million active members Allows you to post important reminders, deadlines, information, links to articlesor other information and interact with former students Mapping Your Future Facebook fan page: facebook.com/pages/mapping Your Future/ ?ref=share 42 Resources Guarantors Lenders Mapping Your Future (Higher Ed News) Consumer credit counseling services (nonprofits) Federal Trade Commission Mapping Your Future plans 43 Mapping Your Future, Inc. 11

12 Future plans Articles in the Mapping Your Future Higher Ed News (strategies, tactics, services) Additional training webinars Presentations you can use to teach Standard or customized calculators to integrate into your website Work with you on how to work delinquency reports Contact Online Student Loan Counseling Beth Ziehmer (573) Future services, default prevention team plans CariAnne Behr (573) Mapping Your Future, Inc. 12

13 Manage Your Student Loan Debt MappingYourFuture.org Your journey starts here! Mapping Your Future is your free resource for career, college, financial aid, and money management information. Visit MappingYourFuture.org for more information, and start managing your student loan debt with these steps now: 1. Consider student loans only after you have researched all the sources of free financial aid (including scholarships, grants and work-study). 2. Consider all the loan programs available, and compare all your options before making a final decision. Only consider alternative/private loans as a last resort. 3. Plan an in-school and after-school budget before you take out your first student loan. 4. Determine how much you can afford to borrow and how much you can realistically repay. 5. Estimate your student loan payment so you will know how much you will be expected to repay each month. 6. Establish a good credit history by repaying your student loan on time. 7. Contact your loan holder about any changes in your status or anything that may affect your ability to pay your loan. These changes may include transferring to another school, changing your name or address, leaving school, or graduating. 8. Consider deferments or forbearance if you to need to adjust or suspend your payments temporarily. 9. Consider a Federal Consolidation Loan if you want to consolidate several loans or types of loans into one loan. 10. If you have an issue you ve been unable to resolve with your school, loan holder, or guarantor, contact your student loan ombudsman.

14 Manage Your Money MappingYourFuture.org Your journey starts here! Mapping Your Future is your free resource for career, college, financial aid, and money management information. Visit MappingYourFuture.org for more information, and start managing your money with these steps now: Establish yourself financially mappingyourfuture.org/money/establish.htm Balance your checkbook mappingyourfuture.org/money/checkbook.htm Start budgeting mappingyourfuture.org/money/budget.htm Save money mappingyourfuture.org/money/save.htm Use your credit cards wisely mappingyourfuture.org/money/creditcards.htm Review and understand your credit report mappingyourfuture.org/money/creditreport.htm Prevent and detect identity theft mappingyourfuture.org/money/identity.htm Use calculators mappingyourfuture.org/money/calculators.htm Budget calculator Helps you develop a saving and spending plan Checkbook balancing tool Helps you reconcile your checking account records with your bank s records Savings calculator See how valuable saving can be Student loan debt/salary wizard Helps you to understand how much you can afford to borrow in student loan funds (and calculates student loan payments) Student loan repayment calculator Estimates your student loan payments Loan consolidation calculator Estimates your consolidation loan interest rate and payment amount Income-based repayment calculator Estimates your monthly payment amount under the income-based repayment plan (for Federal Stafford (subsidized and unsubsidized), Grad PLUS, and Consolidation Loans which do not include any Parent PLUS loans).

15 College Planning and Money Management for Parents Mapping Your Future, Inc. (MappingYourFuture.org) is a public-service, nonprofit organization that offers free services to help students and families plan their careers, prepare for college, and manage their money. Mapping Your Future is sponsored by student loan guaranty agencies all of which are nonprofits or state agencies from around the country. We are supported by other organizations, including charitable foundations and by members of our Friends program, which includes lenders, services, secondary markets, and other organizations. As a parent, you play an important role in the future of your child helping him or her achieve life goals and dreams. To achieve those goals and dreams, you and your child may need help with college planning and money management. Depending on the age of your child, making college planning decisions or helping them with their money management can be difficult if you don t have all the answers. Mapping Your Future can assist you with free information and services. At Mapping Your Future, you can find out how to plan for your child's education (including how to pay for college) and manage money. Get started now by following the tips below and going to MappingYourFuture.org for more information: Help your child learn good money management skills by using the information and tools available on Mapping Your Future. You are your child s best teacher, and an understanding of personal finance will be critical to your child s success. Save for your child s education. If you haven t already done so, you should begin saving for college immediately. You have a variety of options available to make the most of your savings. Help your child plan for college beginning in eighth grade. Your child's high school years are extremely important. In fact, they will affect the choices your child may have for the rest of his or her life! Research and find financial aid. Financial aid is one of the tools that make higher education possible for many students. It could mean your child is able to attend the school of his or her choice, despite higher tuition costs. Research Federal Parent PLUS loans. These loans allow parents to borrow money to pay for a dependent child s college education. Claim tax credits and deductions for education expenses. Mapping Your Future has information about the various tax credits and deductions available for parents and families. Find other career, college, and financial aid resources in your state at Going2College.org. Find necessary forms and other downloads and learn about college and financial aid terms and acronyms.. MappingYourFuture.org