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Default Management Step 5: Make a Plan for ALL Students

February 20, 2014

dp arrowIn 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 covered building a default prevention team, which should include key players from both the financial aid office and from other areas of your institution.

In Step 3, we touched on collecting default data, which brings to light the characteristics of your current defaulted students.

In Step 4, we advised you create a plan to help students who are especially at risk of defaulting.

In developing the best possible default prevention strategy, the next step is to create an in-school plan for ALL students, including those not necessarily “at risk.”

It is important to connect with student borrowers while they are still in school. This should be done in a variety of ways, which could include:

  • Entrance and exit counseling
  • Financial literacy education
  • Collecting contact information
  • Offering repayment assistance

Also, make sure students know the answers to these important questions:

  • Who is their servicer?
  • What does their servicer do?
  • When should they contact their servicer?
  • Where can they find out more about what their servicer offers?
  • How do they determine if they have multiple servicers?

Want tools and resources to help you communicate this information? Share our Meet Nelnet, Your Student Loan Servicer video can help, or hang our 10 Things You Should Know About Student Loans poster in your office. Students can also expand their financial literacy by attending Money Monday webinars (or viewing previously-recorded sessions).

If you have questions or would like help developing a plan for your school, please visit our Default Prevention page or contact your Regional Director.

Kristin Tobias, Communications Coordinator, Nelnet

Kristin Tobias, Communications Coordinator, Nelnet

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