Default Prevention Step 3: Collect Default Data
In Step 1, we talked about the importance of cross-institutional participation in understanding why default is an issue at your school.
In Step 2, we talked about building a default prevention team, which should include key players from both the financial aid office and from other areas of your institution.
The next step to creating an effective default prevention program is gathering data to identify at-risk borrowers at your school. Every school’s “who” is unique, but here are some common characteristics of those who are at risk of withdrawing before program completion and defaulting on their loans:
- Lack of finances
- Relationship issues
- Physical and mental challenges
- Children/families
- Transportation/housing issues
- Poor study habits
- Language barriers
- No campus connection
Along with reporting and default-prevention tools like Nelnet Loan Servicing’s Nsight Plus, there are several other ways to gauge the risk factors for default at your school, including:
- Admissions reports
- Entrance and exit counseling
- Probation/satisfactory academic progress reports
- Registration metrics
For more information about creating a plan for your school, visit our Default Prevention page.
Amy Moser, Southern Regional Director, Nelnet Partner Solutions
