Transcript Your School’s 3 Yr CDR >30%

Cohort Default Rates -3YR over
30%
Notification, Reports, Timeframes,
Default Management Plans
History of NPCC CDR Rates
• NPCC
• 2-Yr CDR
• 3-Yr CDR
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY11
7.6
13
18.5
16.1
18.8
23
23.3
31.8
30.9
28.8P
• P-Projected using most recent school portfolio report from NSLDS
• 2009 Trial 3 year CDRs and the dates received: 24.7% (4/14/2011); 25.8%
(10/30/2009); 20% (10/29/2009); and 10.5% (10/29/2009)
Draft 3 Yr CDR
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Through SAIG mailbox you get shdrlrop file
UNITED STATES DEPARTMENT OF EDUCATION
WASHINGTON, D.C. 20202
FEBRUARY 2012
National Park Community College OPE ID:
012105
101 College Drive
FY 2009 Draft 3 Year Cohort
31.8
Hot Springs, AR 71913-9174
Default Rate:
SUBJECT: FISCAL YEAR 2009 DRAFT 3 YEAR COHORT DEFAULT RATE
Dear President:
I am writing to provide you with your school's fiscal year (FY) 2009 draft
three-year cohort default rate (CDR) data. For domestic schools, and
foreign schools that have one or more borrowers that entered into repayment
during the FY 2009 period, the accompanying loan record detail report
(LRDR) includes information on the loans made to students for attendance at
your school under the Federal Family Education Loan (FFEL) Program and/or
William D. Ford Federal Direct Loan (Direct Loan) Program. The U.S.
Department of Education's (Department) records indicate that all of the
loans included in the report entered into repayment during the FY 2009
period that includes October 1, 2009 through September 30, 2009.
If you have questions about accessing or printing your file, please contact
Operations Performance Division at (202) 377-4259 or via email at
[email protected].
The most important link on the DPM website
(http://www.ifap.ed.gov/DefaultManagement/DefaultManagement.html) is the
link to the Cohort Default Rate Guide. This Guide is a primary reference
source for schools to understand the cohort default rates and processes.
You may download the Guide in its entirety or by specific chapters needed.
Draft 3 Yr CDR (continued)
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The National Student Loan Data System (NSLDS) has been modified to
calculate the CDR using a three-year default monitoring period. Schools
will receive no sanctions or benefits for the first three-year rate issued
in the FY 2009 cohort period. To assist schools in verifying the accuracy
of the LRDR, updates have been made to the report's header, detail and
trailer records. The updated extract file layout for the DRC035 report is
available on the NSLDS Record Layouts page of the Information for
Financial Aid Professionals (IFAP) Website at http://www.ifap.ed.gov.
Operations Performance Division has added other resources to our website.
They are:
Archived Press Packages - Press packages from 1992 to 2008 that give cohort
default rates for the year of the press package and the two prior years.
Link to new eCDR Appeals - The eCDR Appeals system is a Web-based
application that facilitates the exchange of information between parties
for three of the challenge/adjustment processes.
Please plan to visit our website and let us know what you think about it.
If you have any suggestions on improvements/additions to the website,
please let us know via [email protected].
Operations Performance Division staff offer the eCDR Appeals system, a webbased solution to automate the submission of certain CDR challenges and
adjustments requests. Schools must submit their Incorrect Data challenge,
Uncorrected Data Adjustment and New Data Adjustment requests via eCDR
Appeals. The application allows schools to electronically submit these
challenges and adjustments requests during the cohort default rate cycle,
and allows data managers and Federal Student Aid (FSA) to electronically
view and respond to these challenges and adjustments requests.
Draft 3 Yr CDR (continued)
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It is important that schools implement data corrections prior to the
calculation of the FY 2009 three-year official cohort default rates
scheduled for later this year. Chapter 4.1 of the Cohort Default Rate Guide
explains the Incorrect Data Challenge process timeline that a school should
use to identify and correct any inaccuracies reflected in the enclosed
LRDR.
Your school has 45 calendar days to challenge the accuracy of the FY 2009
three-year LRDR. If your school does not submit the challenge(s) within the
required timeframes, your school will forfeit its right to submit such
challenge(s). School's timeframe to submit challenges begins with the sixth
business day following the announced transmission date for eCDR packages
posted to http://www.ifap.ed.gov.
The Department will not release your school's FY 2009 draft three-year
cohort default rate to the public. It is important to note that your school
may not use its FY 2009 draft cohort default rate to determine if it is
eligible for any disbursement exemptions. Corrected data received through
the Incorrect Data Challenge process and from other sources will be used by
the Department to calculate the FY 2009 official three-year cohort default
rates in the fall. At that time, the Department will notify your school of
its official rate, and additional adjustment/appeal rights that may be
available to your school.
Draft 3 Yr CDR (continued)
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If you have any questions about the FY 2009 draft three-year school cohort
default rate review process that are not addressed in the Cohort Default
Rate Guide, please contact Operations Performance Division at (202) 3774259 or via email at [email protected].
Sincerely,
Katrina Turner
Director
Operations Performance Management Services
Special note for schools with 29 or fewer borrowers entering repayment for
the FY 2009 period: Please refer to page 2 of the Cohort Default Rate
Guide for information regarding the average rate formula and calculation.
Analyze Your Loan Detail Record SHCDRROP
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EDUCATION
RATE CALCULATION DATE: 02/12/2012
NATIONAL STUDENT LOAN DATA SYSTEM (NSLDS)
PAGE NO: 1
COHORT YEAR 2009 3YR DRAFT LOAN RECORD DETAIL REPORT (SCHOOL)
ATTENTION: SYSTEM CREATED
ORGANIZATION ID NUMBER: 01210500
NAME:
NATIONAL PARK COMMUNITY COLLEGE
ADDRESS: 101 COLLEGE DRIVE
CITY:
HOT SPRINGS
STATE: AR
COUNTRY:
POSTAL CODE: 71913-9174 RATE TYPE: F; SUB TYPE: P YEARS: 1
---------------------------------------- STUDENT ----------------------------------------- ORIG SCH - ------- CLASS ----- ACADEMIC
SSN
LAST NAME
FIRST/M.I. D.O.B
/ IND BEGIN DATE END DATE LEVEL
----------- ----------------------------------------------- ---------- -------- - ---------- ---------- LENDER/HOLDER ------- LOAN ------- CLAIM RSN/ DEFAULT/
GUARANTOR GUARANTY
ENROLLMENT STAT USAGE
CURRENT TYPE STAT DATE
CODE NEGAM DATE REPAY DATE AMOUNT /SERVICER LOAN DATE
CODE DATE 1 2
---------- -- -- ----------
--
---------- ---------- -------- ----- ----------
- ---------- -
Get to Know the Codes
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XXX-XX-XXXX DZIEDZIC
08/21/2008 05/12/2009 1
899577
SF DU 01/09/2011
W 05/12/2009 B FB
XXX-XX-XXXX DZIEDZIC
08/21/2008 05/12/2009 1
899577
SU DU 01/09/2011
W 05/12/2009 E E
XXX-XX-XXXX DZIEDZIC
01/15/2009 05/12/2009 1
899577
SU DU 01/09/2011
W 05/12/2009 E E
JACQUELINE A 11/14/1983 01210500 N
DF
01/09/2011 09/15/2009 $ 3,500 580
09/17/2008
JACQUELINE A 11/14/1983 01210500 N
DF
01/09/2011 09/15/2009 $ 6,000 580
09/17/2008
JACQUELINE A 11/14/1983 01210500 N
DF
01/09/2011 09/15/2009 $ 2,222 580
01/06/2009
DEFAULT RATE USAGE 1: D = DENOMINATOR, B = NUMERATOR/DENOMINATOR, N = NOT USED, E =
ELIGIBLE BUT NOT COUNTED
DEFAULT RATE USAGE 2: FD = FFEL DENOMINATOR, FB=FFEL NUMERATOR/DENOMINATOR, DD =
DIRECT DENOMINATOR,DB=DIRECT NUMERATOR/DENOMINATOR,
IC = ICR (NEGATIVE AMORTIZATION ONLY), N = NOT USED, E = ELIGIBLE BUT NOT
COUNTED
INFORMATION PROTECTED BY THE PRIVACY ACT OF 1974 AS AMENDED
Read to Bottom of Report
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TOTAL DOLLARS IN DEFAULT :
896,596
BALANCE)
TOTAL DOLLARS IN REPAYMENT :
2,652,755
BALANCE)
TOTAL INSURANCE CLAIM PAYMENTS:
************* = NOT AVAILABLE
0
0 (BASED ON OUTSTANDING PRINCIPLE
0
0 (BASED ON OUTSTANDING PRINCIPLE
ACTUAL NUMERATOR COUNT :
115
REPORT COUNT :
115(B USAGE 1 CODES
ONLY)
ACTUAL DENOMINATOR COUNT:
361 ACTUAL DEFAULT RATE: 31.8 REPORT COUNT :
361(D &
B USAGE 1 CODES)
INDIVIDUAL PROGRAM TALLY: FFEL:
115/361
DIRECT:
0/0
APPEALED RATE FLAG: N (D=DIRECT, I=INDIRECT, N=NO APPEAL, U=UNKNOWN)
IC: (NEGATIVE
AMORTIZATION ONLY)
END OF LOAN RECORD DETAIL REPORT
REPORT GENERATION DATE:
03/03/12
DEFAULT RATE USAGE 1: D = DENOMINATOR, B = NUMERATOR/DENOMINATOR, N = NOT USED, E =
ELIGIBLE BUT NOT COUNTED
DEFAULT RATE USAGE 2: FD = FFEL DENOMINATOR, FB=FFEL NUMERATOR/DENOMINATOR, DD = DIRECT
DENOMINATOR,DB=DIRECT NUMERATOR/DENOMINATOR,
IC = ICR (NEGATIVE AMORTIZATION ONLY), N = NOT USED, E = ELIGIBLE BUT NOT COUNTED
Review of Timeframes
• First thing you need to get a handle on is the
timeframes of when all of this is happening
• 2010 3 yr CDRs are for students who went into
repayment between 10/1/2009 and 9/30/2010
and defaulted between 10/1/2009 and
9/30/2012
• When you get those rates March, 2013 (draft)
• Too late to help 2010, only have March 2013September 2013 (6 months) to try to save 2011
and only until September 2014 to try to save
2012 (18 months)
By the Time You Get a Draft CDR
• Year 1- past by 6 months
• Year 2- 6 months to try to save
• Year 3- 18 months to try to save
NPCC found out March 2012 we were over 30%
on 3 YR CDR for 2009. Three months to figure
out reports and tried to contact students
ourselves. By July, 2012 we hired 3rd party to
help contacting delinquent students.
Procedural Changes at NPCC
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Increased requirements for loan recipients: in-person loan seminars and
worksheets
Prorated budgets for less than full time students so loans are reduced for parttime
Tightening of Satisfactory Academic Policy and Appeals –fewer students
approved
Reporting issues with NSLDS- National Student Loan Data System has been
corrected
Campus-wide push to withdraw students not attending
Loans now disbursed 66% at 30th calendar day of term and 34% held until 60th
day
Hired 3rd party to work late stage delinquencies
2010 3 yr CDR rate will be formally appealed after draft rate revealed March,
2013
Hired consultant to help guide us in formal appeal
Financial aid staff have called those already defaulted to rehab for 2011 and
have been calling delinquency list folks
Students are now being dropped for nonpayment working to reduce Accts
Receivable
Default Management Plan Required
• Q. My school has a 3-year cohort default rate over 30 percent, will
this affect my school?
A. Yes, if your school has 30 or more borrowers, and has a 3-year
cohort default rate that is equal to or greater than 30 percent it
must establish a default prevention task force. This task force must
prepare a plan to identify the factors causing the school’s cohort
default rate to exceed 30 percent and submit to the Department for
review. In addition, schools with cohort default rates of 30 percent
or greater for two consecutive years will have to revise their plans
to implement additional procedures and also could be subject to
provisional certification. In the year 2014, schools that meet certain
criteria will become subject to sanctions as a result of the 3-year
cohort default rates. For more information please read 34 CFR
Section 668.21 and 7 and Chapter 2.4 of the Cohort Default Rate
Guide. Please contact [email protected] for
assistance
Default Prevention Task Force
• Members
• Director of Financial Aid (Committee Chair), Vice President for
Financial Affairs, Director of Student Affairs, Director of Online
Learning, Default Prevention Coordinator (Committee Secretary),
Faculty Business Division (former assessment officer), Director of
Career Services, Institutional Research Analyst, Practical Nursing
Program Director (faculty).
• This group has met and has begun to formulate a four-prong
approach that will address (A) Retention Strategies, (B) Financial
Literacy/Awareness for all constituents of National Park Community
College, (C) Debt Management for NPCC students who apply for
and receive student loans, and (D) Default Management for NPCC
Alumni who have borrowed student loans.
Default Prevention Plan Requirements
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Default Prevention Plan Submission Overview For Schools with 3-Year Cohort Default Rate 30% or Greater Posted September 2012
Background
Under Section 435(a)(7) of the HEA, an institution that has a 3-Year Cohort Default Rate of 30 percent or greater for any one federal
fiscal year is required to establish a Default Prevention Task Force to reduce defaults and prevent the loss of institutional eligibility.
Preparing a Default Prevention Plan
The HEA’s implementing regulations at 34 CFR 668.217 require that a school’s Default Prevention Task Force create a program of
default prevention and submit a written Default Prevention Plan to the Department of Education (the Department).
A school’s Default Prevention Plan must:
• Identify the factors causing the default rate to exceed the threshold
• Establish measureable objectives and the steps the institution will take to improve its cohort default rate
• Specify the actions the institution will take to improve student loan repayment
Plan
Plan Submission Deadline and Assistance
Default Prevention Plans should be submitted to the Department by November 30, 2012 via e-mail to
[email protected].
If a school would like assistance in developing or reviewing its Default Prevention Plan, it may send an e-mail request to
[email protected] that includes the name, phone number, and e-mail address of a contact person at the school.
Additionally, we encourage schools to visit our Default Prevention Resource Information page on the Information for Financial Aid
Professionals (IFAP) Web site. This page consolidates delinquency and default prevention resources in one location.
Background
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National Park Community College
Default Management Plan
2012-2013
Background
Students attending National Park Community College (NPCC) rely very heavily on financial aid. Over 70% of
our students receive some form of Title IV federal aid the past three years. During the 2010-2011
Academic Year, NPCC awarded over $18 million dollars in Federal Financial Aid (Pell Grant, SEOG, FWS,
ACG). Over this same period of time, NPCC students received over $10 million dollars in loans (Federal
Direct Subsidized, Federal Direct Unsubsidized, and Federal Direct PLUS). While the awarding of these
grants and loans provides NPCC students tremendous access to educational pathways, the large amount of
student loan debt that is being accumulated could result in NPCC’s Cohort Default Rate (CDR) rising to the
point in which our eligibility for receiving Federal Financial Aid could be revoked.
The CDR is the percentage of a school’s borrowers who enter repayment on student loans during a federal
fiscal year (October 1 to September 30) and default prior to the end of the next two federal fiscal years.
The first official 3-year CDR was generated for the FY2009 cohort in September/October, 2012, while the
first “draft” rate was available in March 2012. The concern is that if the school stays at 30% or higher for
two more consecutive years, they risk the loss of eligibility for all Federal Grants, Loans, and Work Study.
Current Approach
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The Financial Aid Director (FA Director) and Vice President of Financial Affairs
(VPFA) have identified a multi-discipline membership for a Default Management
Task Force (DMTF) and it has been assembled one time May 14, 2012 and a second
time on August 29th, 2012 to review the draft of the Default Management Plan and
discuss likely effectiveness of the elements of the plan.
DMTF Purpose and Objective:
The purpose of the Task Force is to assist in analysis, advice, and suggestions for
lowering the Cohort Default Rate (CDR), assist in garnering college wide awareness
and support to improve/change college policies and procedures with
recommendations to Administrative Team.
The Task Force will be responsible for developing a Default Management Plan for
National Park Community College. They will be responsible for implementation,
evaluation and modification of the plan based on data analysis of NPCC Financial
Aid statistics. The goal is to decrease the current default rate below the identified
federal threshold, provide practices and protocols for financial aid awarding and
disbursement at NPCC, align with Federal Compliance, provide resources to
students for financial literacy, and increase awareness college- wide of the default
plan and financial aid protocol.
Data Analysis
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In March 2012, the financial aid staff researched the FY2009 3-Year CDR to review the defaulters and determine which
students were defaulting. The following are the characteristics of the FY2009 2-Year defaulters (115 defaulters in the cohort
of 361 students in repayment):
75.8% owed < $10,000 at NPCC
– 67% owed < $10,000 in total at all institutions
77% are Independent students (as determined by the Free Application for Federal Student Aid or FAFSA)
65% were born 1980 or later
57% had a last enrollment status of “Withdrawn” or unofficially withdrew
88.5% did not graduate
41% had below a 2.00 CGPA
25.6% had at least one remedial class
Majors which account for large % of defaulters (44%)
• ASN(Nursing)(13%)
• AA (Associate of Arts)(11%)
• ALS(Associate of Liberal Studies)(10%)
• TC Practical Nursing (10%)
General analysis of the data shows that the primary problem is related to retention – students only attend a few semesters
with 84.5% of the defaulters having withdrawn one or more semesters. Without obtaining an academic credential students
then have difficulty obtaining better employment and have trouble repaying their loans.
Also recent studies have shown that students who default have deficiencies in financial literacy and debt management skills.
All of these areas are going to be strengthened by providing more financial literacy to current students and debt
management information to current and former students who are alumni of NPCC.
Retention Strategies
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Strategies and Efforts
Based on the changes and the increase of the 2-Year CDR and with the introduction of the 3-Year
CDR per Federal Regulations, the Financial Aid Office at NPCC has implemented the following:
Retention Strategies (Timeline – Fall 2012/Spring 2013)
The college is embarking on an ambitious plan to strengthen the retention of its students. Policies
and procedures are being added, revised or enhanced to increase the current NPCC retention rate.
Although the strategies for retention are not based on the Financial Aid Cohort Default Rate, per
Federal Guidelines, NPCC is recommending the guidance goes beyond financial aid processes and
will be integrating retention strategies to address the whole student. Addressing the student in
multiple areas of admissions and enrollment processes, academic achievement, and financial
responsibility will add additional depth to this plan.
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PACE grant changes for Math placing all students below 16 ACT in math, with a major in a technical field, in
the Foundations of Technical Math course; if in nontechnical degree, 19 ACT in math or below, student is
enrolled in Foundations of College Math 1A.
Review and revise (if needed) the “No show”, “Drop”, and “Withdrawal” policies.
Training for faculty and staff on cohort default rate.
Cohort default rate management plan.
Strengthen College wide (Early Alert System).
Financial Literacy Strategies
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Financial Literacy/Awareness for all constituents of National Park Community College (Timeline – Fall
2012/Spring 2013)
This will be a broad sweeping initiative outreaching all constituents at NPCC, faculty, staff and students.
Outreach programs will be designed around curriculum opportunities, workshops, financial literacy TV,
portal enhancements, guest lecturers and other resources as identified. The Task Force will engage
Student Life, Student Organizations, Faculty and Staff in order to reach the most members of campus. The
goal will be to bring the issue of Financial Literacy to the forefront and provide our college community with
avenues for them to be able to learn and incorporate strategies to becoming financially healthy.
– Student Outreach
• Financial Literacy courses available for all students through third party software
• College Goal Sunday- March, 2013
• FAFSA Workshops ( Financial Aid 911 week)
• Student Orientation including more financial literacy information
• Improve mentoring program –financial aid staff more involved
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Faculty outreach
• Financial Aid Facebook postings and emails campus-wide
• Attend Division Meetings once every fall semester
– Default awareness
– Change in withdrawal policy- focus on attendance
Staff awareness
• Financial Aid Facebook postings and emails campus-wide
• Attend department meetings once every fall semester
Debt Management StrategiesCurrent Students
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Debt Management for NPCC students who apply for and receive student loans (Timeline – Fall 2012/Spring 2013)
The overriding belief is that this needs to be comprehensive, individualized and structured to provide accurate information
and initiate a pathway for student financial awareness and success. Implementing requirements at NPCC for all student loans
recipients, communicating the process and holding students accountable for their financial debt are critical. Student
intervention, prevention and coaching strategies will be included which will involve increased staff time at the onset. But the
intent is the long term relationship that will be established, an increase in student learning, accountability, and lower
student loan debt, and ultimately an acceptable and manageable cohort default rate.
Enhanced Entrance Loan Counseling
– All loan recipients (new and returning) of National Park Community College are required to attend an in-person Loan
Counseling Seminar session.
– Fall 2012 all NPCC Financial Aid students will be required to turn in a Federal Direct Loan Worksheet which utilizes
some of the training they received in the seminar regarding NSLDS loan debt and monthly repayment amounts,
careers and the entry level salaries in Arkansas annually and monthly, and reason the loan is being requested to
review for allowable educational expenses.
– Collect additional contact/reference information (physical addresses, telephone numbers, email addresses, social
networking sites, etc.).
– Make available to all students financial literacy courses offered by third party.
Student Loan Processes
– The FA Office will offer loans based on COA which are prorated based on enrollment.
– Students must accept the loans on the PeopleSoft OASIS student portal.
– Students who decline loans initially must complete a loan application form with additional information to receive a
loan after an initial denial decision.
Debt Management StrategiesCurrent Students (continued)
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At-risk Students
– The Default Prevention Coordinator will obtain lists of all students on delinquency list and
then contact them to set up a meeting with the student to discuss their current loan debt,
repayment obligations, repayment options, etc.
– The Default Prevention Coordinator will obtain lists of students identified by the Early Alert
System, identify student loan borrowers, and contact them to set up a meeting to discuss their
current loan debt, repayment obligations and options.
– The FA Director who responsible for completing Return of Title IV Funds (R2T4) calculations
will modify the letter that is sent to each R2T4 student to include verbiage that if they had
student loans they should make an appointment with the Default Prevention Coordinator to
discuss their current loan debt, repayment obligations, repayment options, etc.
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Reduce or Deny Student Loans on a Case-By-Case Basis
– In accordance with the Higher Education Act [Amd. 1998 – Title IV, Part F, Section 479A(c)]
[Code of Federal Regulations: 34 CFR 682.603(e)] a school may refuse to certify a loan (or a
portion of a loan) if the reason is documented and provided to the student in writing. As part
of NPCC’s default management effort staff will review every federal direct loan worksheet
individually and review all relevant criteria including but not limited to planned use of the loan
funds, debt ratio, academic progress, and educational goal. If a student loan is reduced or
denied we will provide a written notification to the student with the reason(s) included. The
student will be referred to the Default Prevention Coordinator for intervention.
Debt Management StrategiesNPCC Alumni With Loans
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Default Management for NPCC Alumni who have borrowed student loans (Timeline – Spring/Fall 2012)
Students who graduate or leave NPCC (i.e. alumni) are responsible for repaying their incurred student loans 6 months past the last date of
attendance. The assumption that students are aware of their options for repayment and have a thorough understanding of their financial obligations
may be unrealistic. Therefore the College must continue proactive interventions to assist the alumni in their financial responsibility.
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Internal processes
• The Default Prevention Coordinator (with assistance from the Loan Officer and other part time staff) will contact students on the list
of graduates provided by the Registrar’s office who have student loans to ensure they received their packet of information and to
recommend they set up an appointment to discuss their current loan debt, repayment obligations, repayment options, etc.
• The FA Office will access and utilize reports from the National Student Loan Database System (NSLDS) such as Delinquent Borrower
Reports, Date Entered Repayment Reports, etc. on a monthly basis.
• The FA Office will receive, review and challenge the draft default rate data using the Loan Record Detail Report (LRDR) and work with
servicers for corrections.
• The FA Office will work with borrower delinquency reports from loan servicers and assist them with skip tracing, if necessary, utilizing
the additional contact information received at Entrance Loan Counseling and other data collection points newly established at NPCC.
• The FA Office will assist potential NPCC graduates to prepare for financial repayment responsibility by offering Exit Loan Counseling
sessions, in person counseling with Default Prevention Coordinator or staff, and third party’s financial literacy modules.
• The Graduation Survey will be modified to include the question about whether or not the student would like loan counseling follow
up from the financial aid office and will mention the requirement that they complete Exit Loan Counseling.
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External resources
• Third party delinquency assistance
– NPCC implemented an agreement with Inceptia (NSLP) Repayment Outreach (out-come based) July, 2012 for the 2010,
2011, 2012 cohort default years and has plans to begin grace period counseling at some point in the future.
– Their services/responsibilities are to provide additional contacting of delinquent borrowers beyond the standard
requirements for the students in their portfolio as well as students in other student loan servicers (such as Sallie Mae, ACS
and Great lakes) portfolios.
Department of Education’s Default Prevention Team -Contacted the Department of Education’s Default Prevention Team for default prevention
assistance.
Processes/Efforts with Direct Impact
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Fall 2012 – Required attendance in Loan Counseling Seminar for all NPCC loan applicants.
Fall 2012- All loan applicants must submit Federal Direct Loan Worksheet. This form requires the student
to identify their career goals and attach proof of expected entry level salary/monthly salary, current and
projected student loan debt with monthly repayment amounts projected for both with attached NSLDS
printout, and the reason the student needs the loan and what it will be used for (to be reviewed for
educational expenses allowed).
Fall 2012 – Cost of Attendance budget components for tuition, fees, books, and transportation are being
prorated based on level of enrollment.
2011-12-13- Satisfactory Academic Progress policy has been made more stringent each year with students
with all F’s and or W’s no longer being allowed to appeal without documented death in the family or
medical reasons. Financial aid appeals processes have been strengthened and the committee makeup has
been changed from the financial aid staff/counselors/VP for Student Services to the 1st level appeals
committee being comprised of the Vice President of Financial Affairs, Director of Financial Aid, Assistant
Director of Financial Aid, Financial Aid Coordinator, and Default Prevention Coordinator and 2nd level
Faculty and Staff unrelated to financial aid or student services areas.
Spring, 2012- Staff member reassigned duties as full time Default Prevention Coordinator (plus 1-2 part
time staff) assisting in making calls to all students who have withdrawn, graduated or are on delinquency
lists.
Fall 2012- loans are being disbursed in two disbursements for fall and two for spring for all students,
approximately 30 days (2/3 disbursed) then at approximately 60 days (1/3 disbursed).
Processes/Efforts with Direct Impact
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Fall 2012 website being updated to include section on student loan information with links to related
websites.
Fall 2012 enrollment reporting to the National Student Loan Clearinghouse has been improved and will be
reported every 45 days rather than every 60 days as required minimally.
July 2012 – Contracted with third party for delinquencies – utilized to contact students with student loans
in delinquent status for NPCC borrowers with all other direct loan servicers (such as Sallie Mae, ACS,
Nelnet, and Great Lakes) above the required contacts required by federal regulations.
July 2011- Pilot Program with guarantor in Arkansas:
– Sending series of 3 letters and making phone calls to delinquent FFEL borrowers for NPCC
– Performing skip-tracing on delinquent borrowers on behalf of NPCC all the way to 360 days
delinquent
Spring 2012- Added R2T4 list to be contacted by Default Prevention Coordinator or assistants for
prevention intervention.
Spring 2012-Added needing updated contact information on Financial Aid Appeals form in the FA Office.
Spring 2012- Executive Vice President for Academic Affairs and Director of On-line Learning have started
making requests of faculty both full time and part time regarding withdrawing for students who are not
attending prior to the important dates each term to make sure and withdraw students who are no longer
attending classes so that no loans will be paid to students not attending classes. Improvements are being
made but are still needed in this area.
Processes/Efforts with Indirect Impact
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Research is being done on the number of students withdrawing or defaulting who are in predominately
on-line coursework.
Transfer student’s transcripts – an automated way of reviewing of the last semester of coursework prior to
enrolling at NPCC is being investigated for denial of aid eligibility that is consistent with non-transfer
students.
Fall 2012-Reinstated Drop for Non-Payment.
Fall 2011-12- Financial Aid Coordinator increased communications with students, faculty and staff
concerning financial aid changes, policies, information concerning loan requirements, including setting up
a Facebook page, emails to students, and mailing of letters.
Spring 2012- asked counseling staff to give form to students asking for updated addresses and contact
information as they enroll for courses.
Spring 2012-Registration closes on Friday before first day of semester classes.
Spring 2012- All graduates of NPCC (listed provided from Registrar’s office) are being surveyed and asked if
they have done their exit counseling procedures and asked if they would like financial aid staff to contact
them for more information on what they can do to successfully repay their loans.
Fall 2012 – Campus-wide communication increasing. FA Director will attend the first academic division
meeting each fall to describe the CDR and the potential impact on the college. President will also address
the CDR impact at the fall faculty/staff workshop day, where it is requested that all employees to attend
including adjunct faculty.
Timeframe/Review and Modifications
Timeframe
• This Default Prevention Plan will be communicated to the President and
Administrative team for them to review, distribute as they see fit, and
then return any comments, suggestions, questions or concerns to the Task
Force. The Task Force will continue planning and implementation in order
to meet the various timelines identified above.
Review and Modifications
• It will be the responsibility of the FA Director and Default Prevention
Coordinator to gather data through the Institutional Research Office and
the Financial Aid Office. Data, outcomes, changes in federal requirements
and other relevant information will also be represented to the Task Force
who will in turn modify the plan and implement and modifications
accordingly. This default management plan will be regularly reviewed and
adjusted as needed.
Feasibility of Resources at NPCC
•
Human, financial and physical resources are adequate at this time to adopt additional strategies for
Default Prevention/Management.
Human Resources
•
Currently the Financial Aid Staff are viewed as the integral staff for processing of Financial Aid applications
including loans. The additional human resources of an extra help person who assists the Default
Prevention Coordinator and 4-5 work study students has helped shore up the moving of a loan counselor
to the full time position of Default Prevention Coordinator. Also outsourcing of the default prevention
Repayment Outreach program to third party in July, 2012, will relieve some of the strain on the staff in this
area and the workload associated with these efforts.
Physical Resources
•
The renovation of the Student Center which houses the Financial Aid Department includes a larger area to
house extra staff to assist with imaging, calling students and mailing letters and processing in general. The
centralization of Financial Aid, Academic Advising and support staff will be beneficial in working as a team
for students, improving efficiency and future changes for managing default rate through staff awareness.
•
Training of the counseling staff has included the area of financial aid processes and access to student
information as needed has alleviated some traffic on the financial aid side and makes the counseling more
financial aid friendly. Students are able to get information about their FA award at multiple points as they
progress through the enrollment/registration process. This has decreased the need to always see a
Financial Aid Advisor affording FA staff more time to address loan counseling and intervention.
Financial Resources
•
Financial resources for staffing at the current level remains intact with additional budgeting for
outsourcing for repay options.
Current State
Current State
• NPCC has been engaged in default strategies prior to and during the
development of the plan. The current state is reflected below.
*Utilizing External Resources
•
As stated NPCC entered into an agreement with a third party who
will start July, 2012 working with delinquent borrowers before they enter
default status. The agreement is a late stage default prevention package
currently, but in the future NPCC plans to utilize a more extensive option.
The college is hopeful that this approach has significant impact on the
next default rate for NPCC and is integral in managing the rate. NPCC is
committed to funding this external service. In the future when services are
expanded to grace period counseling the agency will go through the RFP
process and bid the services to determine the awarded agency that will be
able to expand these services and assist in the default management of
students that have left NPCC.
Action Items
Action Items Page 2
Action Items Page 3
Action Items Page 4
Action Items Page 5
Action Items page 6
Action Items Page 7
The Good News for NPCC
• 2010 3 YR CDR down slightly 30.96%- we didn’t
save it in the 6 months we had to try but reduced
it and have active appeal in place
• 2011 3 YR CDR is projected at 28.80%- our third
year is going to be saved due to all the efforts we
have made according to our projections with our
3rd party we are safe for 2011!
• 2012 3 YR CDR is projected at 24.22% currently
Wrap Up
• This is a lot more detail than you need now
• If you happen to need it or know a school who
does you have a copy of a default prevention plan
that was approved by the USDE for year 1
• Hints: Tracing students yourself- use Facebook we
found tons of students there and contacted
them; you can use software like Been Verified to
help track them; ask faculty and staff to help you
locate students; it takes buy-in from the whole
institution to make a change like this work