Transcript (Huston-Tillotson) and Valentino Bryant (Shaw University)
UNCF ICB ACCREDITATION AND STUDENT LOAN DEBT MANAGEMENT INSTITUTE
D E F A U L T P R E V E N T I O N B E S T P R A C T I C E S P R E S E N T E D B Y A N T O N I O H O L L O W A Y ( H U S T O N - T I L L O T S O N ) A N D V A L E N T I N O B R Y A N T ( S H A W U N I V E R S I T Y )
What is Default?
Failure to repay a loan according to the terms and conditions agreed upon when the borrower signed the Master Promissory Note.
Default occurs when the borrower becomes 360 days delinquent with payments The consequences to the borrower and the institution are severe.
Consequences of Default for Schools
High Cohort Default Rates can Negatively reflect school quality Result in Provisional Certification Result in loss of Title IV eligibility Minimize access to Private Loans
Seven Reasons Students Default
Entered Military Service Low Wages / Income Trouble With Personal Relationships Unemployed High Medical Bills Married Someone With High Student Loan Debt Lack of Knowledge
What Huston-Tillotson University Have Implemented to Lower Default Rates
(In-School Efforts)
Enhanced Entrance Counseling Provide Financial Literacy and Scholarship Workshops Complete in-school deferment forms for prior loans Explain Satisfactory Academic Progress (SAP) Encourage students to pay accrued interest while in school Require Financial Literacy for all freshmen and transfers In-person exit interview for official withdrawals
Withdrawn Students Efforts
Encourage student to re-enroll Implement a withdrawal process where student must see a retention officer In-person exit interview for official withdrawals Mail exit package to unofficial withdrawals Use servicer to mail grace letters Use servicer to contact borrowers that withdraw and become delinquent on loans
Grad Student Efforts
Require in-person exit counseling for graduates Require financial literacy for graduates Use servicer to mail grace letters Use servicer to contact graduates that become delinquent on student loans Provide institution contact information to all graduates
Partner With External Agencies
Collaborate with outside agency on writing a default prevention plan (TG assist Huston-Tillotson) Seek grant opportunities to help defray the costs for equipment, workshops, and additional employees, etc. (Huston-Tillotson received $100,000.00 from USA Funds)
What Shaw University Have Implemented to Lower Default Rates 2009: 30.2% 2010: 19%
Three Phase Approach
“Where Are We?” and “How Did We Get Here?” Creation of Default Prevention / Retention Committee Strategic Implementation Operation Default Rate Reduction
“Where Are We?” and “How Did We Get Here?” We worked with the Office of Strategic Planning Institutional Research & Effectiveness (OSPIRE) Based on 2009 2 year Draft Rate (23.1%) 233 Student Defaulted 183 Withdrawals 49% Freshmen; 29% Sophomore; 13% Junior; 14% Seniors and 1% Grad Students Low Retention Rate = High Default Rate and High Retention Rate = Low Default Rate
Creation of Default Prevention/Retention Committee Vice President of Student and Academic Affairs Financial Aid Default Prevention Academic Success OSPIRE Admission First Year Program Ensures default prevention goals and plans are met Creates across-the institution “BUY-IN” Helps justify additional resources if needed Analyze data, resources and current practices
Strategic Implementation Operation Default Rate Reduction: Phase I
Stopping the Monument
Adjusted two staff members work hours Monthly phone Blitz (one night a month all FA counselors stay late to make calls to delinquent borrowers) Mass mailing via USPS and emails Social Media
Strategic Implementation; Phase II: Financial Literacy/Awareness
Student Outreach
New Student Orientation Breakout sessions for parents and incoming freshmen Early Alert System During Freshmen Orientation, students complete an online survey, which allows the university to identify potential At-Risk Students Monthly Newsletters Financial Literacy Workshops Implementation of USA Funds Life Skills Development of Student Peer Financial Literacy Mentors
Faculty/Staff Outreach
Monthly Newsletters Attend Faculty Meetings once per semester To promote Default Awareness Partnered with some faculty members who allowed us to participate in their class discussions about Financial Literacy
Contact Information
Valentino Bryant Shaw University Default Prevention Administrator 919-546-8434 [email protected]
Antonio Holloway Huston-Tillotson University Director Financial Aid 512-505-3031 [email protected]