(Huston-Tillotson) and Valentino Bryant (Shaw University)

Report
UNCF ICB ACCREDITATION AND
STUDENT LOAN DEBT MANAGEMENT
INSTITUTE
DEFAULT PREVENTION
BEST PRACTICES PRESENTED BY
ANTONIO HOLLOWAY (HUSTON-TILLOTSON)
AND
VALENTINO BRYANT (SHAW UNIVERSITY)
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Withdrawn Students Efforts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
Financial Aid
Vice
President of
Student and
Academic
Affairs
Admission
Creates
across-theinstitution
“BUY-IN”
Default
Prevention
Helps justify
additional
resources if
needed
First Year
Program
Academic
Success
OSPIRE
Ensures
default
prevention
goals and
plans are met
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]

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