Today’s weak economy, growing student loan debts, split-serviced loans and the new three-year cohort default rate calculation have altered the landscape for default prevention and student success. These new challenges call for a proactive approach to default prevention. USA Funds® offers one-on-one consultations to help you develop, review or revise, and then implement default prevention and debt management plans to promote successful student loan repayment.
Your USA Funds representative will work with you to:
- Explore your institution’s needs.
- Identify areas for improvement.
- Establish goals and objectives.
- Define measures of success.
- Propose recommendations.
- Assist with deployment of recommended tools and activities.
- Help measure your progress toward your defined goals.
- Provide ongoing support.
Measuring the Value of Default Prevention
In addition to supporting your institution’s eligibility for student aid programs, your default prevention efforts benefit your former students and U.S. taxpayers.
Use the USA Funds® Default Prevention Savings Calculator to estimate the potential impact of your efforts.
You’ll need to enter information about your institution’s most recent and previous year’s two-year cohort default rates (or alternatively a peer institution’s default rate), the number of borrowers in the most recent cohort, the total amount of loan dollars that entered repayment for that cohort, your current year’s Stafford loan awards and number of students who borrowed Stafford loans during the current academic year.
The calculator will return the estimated average loan balances and additional costs of default for your borrowers, as well as the estimated savings due to a lower default rate to borrowers and taxpayers.
We’re Here to Help
Since 1999, USA Funds staff have provided debt management consultations to help colleges and universities enhance campus debt management, financial literacy and student retention programs. For more detailed information about our Debt Management Consultations: