ERIC Number: EJ1092566
Record Type: Journal
Publication Date: 2014
Reference Count: N/A
In Good Standing: "Helping Colleges Manage Student Default Rates"
Community College Journal, v84 n6 p15-19 Jun-Jul 2014
The U.S. Department of Education estimates that 20 percent of community college students default on their student loan obligations (compared with 14.7 percent of all student loan borrowers), and that number is rising. What can community college financial officers do to keep their default numbers low? In this article, Heather Boerner describes the steps many community colleges are using. She points out that when financial aid officers stay alert to potential defaulters by being proactive it benefits the college and student. This article suggests some steps that financial management teams are using: (1) running campus-wide awareness programs designed to teach students about their individual loan servicers, making them more responsive to contact from such providers; (2) keeping an eye on students who aren't doing well in their courses or who have missed classes as these are potential loan defaulters; (3) alerting Direct Loan borrowers to inform them of their financial standing; and (4) using third-party companies that track down former students who have disappeared. When program administrators work with faculty, staff, and advisers to keep an eye on students who are struggling, it may just be that personal touch can prevent a default and allow students to maintain their good credit as responsible, productive citizens, and allow colleges to keep their bottom line in shape with reduced default percentage rates.
Descriptors: Loan Default, Community Colleges, College Students, Student Financial Aid Officers, Student Financial Aid, Money Management, Predictor Variables, Program Administration, Credit (Finance), Loan Repayment
American Association of Community Colleges. One Dupont Circle NW Suite 410, Washington, DC 20036. Tel: 202-728-0200; Fax: 202-833-2467; Web site: http://www.aacc.nche.edu/bookstore
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Two Year Colleges; Higher Education; Postsecondary Education
Authoring Institution: N/A