Texas Student Loan Default Prevention Pilot Program

Transcription

1 Texas Student Loan Default Prevention Pilot Program Jeff Webster, Assistant Vice President Research and Analytical Services TG Sharon Cabeen, Senior Director Student Success Student and Institutional Success TG

2 What is the pilot?

3 Student Loan Default Prevention and Financial Aid Literacy Pilot Program Senate Bill 680 A program and a study Consumer information

4 Purpose [T]he board shall establish and administer a pilot program at selected postsecondary educational institutions to ensure that students of those institutions are informed consumers with regard to all aspects of student financial aid, including: (1) The consequences of borrowing to finance a student s postsecondary education; (2) The financial consequences of a student s academic and career choices; and (3) Strategies for avoiding student loan delinquency and default

5 Background Senator Royce West TG s Major Choices THECB sunset legislation

6 Statute Purpose Criteria for school selection Administration Assessment Reporting requirements Timing

7 THECB Rules and Comments THECB Rules Comments on the proposed rules Secondary selection criteria Intermediate monitoring Definition of eligible activities Leveraging existing default prevention strategies Build a statewide default prevention program

8 TG s Role THECB s program TG is a service provider for the duration of the pilot

9 Participating Schools By School Sector Community Colleges: Austin Community College El Paso Community College Tarrant County Community College District For-Profit Career Colleges: International Business College Western Technical College

10 Participating Schools By School Sector Public Universities: Prairie View A & M University Texas A & M International University Texas State University San Marcos Independent Colleges and Universities LeTourneau University St. Mary s University Texas Chiropractic College

11 Process Assumptions Balancing services with assessment Targeting limited resources Empowering schools Direct services Expectations for school participation

12 Pilot Features

13 Default Prevention Plan Galvanize institutional support for default prevention Data driven plan designed to identify populations to target limited resources Focus on consumer information for current students Assess current default aversion practices Propose strategy Measure success

14 Financial Literacy and Student Loan Counseling Training Train-the-trainer sessions Target most useful modules for purposes of the pilot TG provided materials Assessment Next year: One or two new modules focused on debt-to-income by major decision-making

15 Integrated Counseling Messages/Trainings Previous TG research showed lack of coordination between financial aid office, academic advising, and the career center Convene meeting to learn from experts on how to best integrate these messages Develop training modules based on expert advice

16 Financial and College-Going Articles/Tips Once a month, tips to students to coach them through One page articles Timed to be relevant Content developed by TG

17 Financial Coaching Call center support for borrowers in school Chat and screen sharing capabilities Provide just-in-time coaching on how to financially survive college Research supports personalized approach

18 Reports and Assessment Long-term assessment based on CDRs Intermediate assessments based on preand post-tests of knowledge acquisition and behavioral change Assess features and overall program

19 Next Steps From Where We Are

20 Next Steps From Where We Are The state s long-range strategic plan should address: student loan delinquency and default prevention personal financial literacy applying for student financial aid paying for college debt management and, In-school student loan counseling. Goal of pilot to identify best practices and rollout statewide. Texas reliance on loans raises urgency in addressing needs

21 Texas Student Loan Default Prevention Pilot Program

22 2010 Texas Guaranteed Student Loan Corporation To order additional copies, or to request permission to reproduce any of the information provided, please call TG Communications at (800)