Meeting the Student
A couple of things we are doing at our campus to impact default rates. We are making sure that the new students meet with the finance processors, and the student loan specialists at the point of enrollment. The student may not remember much of the day, however we make it a point to give the student our business cards, as well as a welcome packet which discusses loan responsiblity. Within the first 45 days of the student starting we make sure our student loan specialist are in the classroom conducting a Financial literacy workshop. This workshop talks about budgeting, as well as student loan obligations. We make this as interactive as we can by showing a ppoint presentation, and awarding goodies to students who answer questions, or offer comments. After that we send the finance folks into the classroom on a regular schedule to see how things are going, and to remind students of their obligations.
I love the idea of the follow up within the first 45 days. That first meeting is so overwheming that not much is retained so giving them the chance to go over everything again is great. Awesome idea on making it interactive and awarding goodies to inspire participation!
Our corporate office which creates the policies for our 20 campuses is very specific and direct about transparency in financial matters from the get go with our students. During the student's initial Admissions contact, prior to moving onto the Application and Enrollment processes, the student is required to meet with financial aid for an estimate that will introduce them to the possibilities of how they can pay for school. We emphasize at this appointment that students need to repay their loans with interest six months after they leave school or graduate. However, no matter how specific we are, most of our students still walk away without knowing what they are getting into. To me this is a reflection of selective student hearing. However, our campuses do all offer the services of a specific Borrowers Default Prevention office upon graduation and our cohort default rate seems low enough so this must be working.
Elysia,
I also think it is true that students have selective hearing, especially when it comes to financial matters. They really want to go to school, and that desire sometimes overshadows the financial reality of what loans are really all about. However, it sounds as if you are educating them with specific default prevention services during and after their enrollment, and I am sure that these services are making a positive difference--I think students start listening more and more as student loan repayment gets closer. Diana
Each Semester I meet with 10 or more students to see if they know where they stand with there loans. We go over there balance. What is left , how they plan to pay when they graduate all options. We talk about the cost of starting out, equipment, clothing, event gas and car payments. I have a open door policy. If you have a question, my door is open for you to come in. You have a question I can not readly answer, I find it for you or we can look together. I have been doing this for the last 10 months and am getting better educated FA students. Knowledge is key to sucess.
Paula,
Wow, this is great! I love that you discuss general finances with them as well and how they play a part in the overall budget. It's so easy to forget about these even when they are a large part of your life. Awesome work! Your students will really benefit from such personal interaction and you are building a relationship so the student knows they have someone to turn to even after they leave school.
Cheryl Kesson
Communication is key when it comes to establishing a good relationship with new students, first step in Default prevention measures.
Lorena Villarreal
The students receive so much information during their appointments that it can be overwhelming. We sometimes forget how much we know about financial aid and this is probably the first time the student has heard any of the information. I think we need to keep this in mind while explaining all of the very many details of FA. Follow up with them at every opportunity is important to make sure they understand their financial aid package.
Tish,
This is so true. When I started school, I recall receiving a lot of information that I was not prepared for, and as a result I did not take most of it seriously until I was close to the end of grace and I finally realized that my loan balance would have a real, tangible effect on my everyday life. The loans were no longer an abstraction. I would hope to correct that type of thinking with new students so that they can learn from others' mistakes and experiences.
One thing I have found frustrating over the years are loan counseling or FA handouts that only use examples of loans so small that the total monthly payment is $50. For many colleges a monthly commitment this low is completely unrealistic, and as a result the examples displayed in training materials can give students the wrong impression. When I took out my first loan, I knew I could handle the payments after I left school. Several years and many loans later, the total balance had exploded and the monthly payments under the standard repayment plan were much higher than I expected. It is important to touch base with students as each new term begins so that they understand how their obligations change as more loans are taken out. Students also need to understand how their loan balance will be affected by income-based repayment plans, as the payments might not be as low as they expect. We have to help them accept there is no “magic bullet†that eliminates the need for diligent, responsible planning.
Kellee Gunderson
