We will fully implement a Default Management Plan, communicate with students in a delinquent, default or pre-claims status, verify that all borrowers receive exit counselling, etc.

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Default Reduction Measures – Financial Aid Issues

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• Increase the frequency of reviews of in school status of borrowers to ensure prompt recognition of instances in which borrowers withdraw without notice to the institution or drop below 6 credits in the enrolment period

• Notify and follow up on all borrowers reminding them to complete their Exit Counseling Interview online once the borrower has withdrawn, dropped below 6 credits in an enrollment period or graduates.

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After Borrowers leave

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• Contact borrowers during the grace period in order to

  • remind the borrower of the importance of the repayment obligation and the consequences of default by means of telephone contact, e-mail, or letters

  • update the institutions records regarding borrower’s address, telephone number, e-mail address, employer and send corrections as necessary

  • remind the borrower to complete any required exit interview not previously completed online

  • use this correspondence to educate borrower on items such as deferments, forbearance and consolidation.

• In compliance with law, contact each borrower with respect to whom pre-claims assistance from the Department of Education has been requested to urge borrowers to repay the loan. Send information regarding deferment, forbearance and the consequences of default by means of e-mail, telephone contact, or letters.

• Review the NSLDS Date Entered Repayment (DER) report on a monthly basis and compare to school's records and make any corrections to their borrower's status using NSLDS Enrollment Reporting.

• Use the Early Stage Delinquency Assistance (ESDA) and the Late Stage Delinquency Assistance (LSDA) reports along with the Cohort Action Reports to assist with activities that will encourage students heading toward default to pay back their loans. These activities include but are not limited to e-mails, letters and telephone calls reminding students of the consequences of default and provide information regarding forbearance, consolidation and cancellation provisions.

• Review the Draft Cohort Report each year for accuracy and identify trends by analyzing who is defaulting and why.