One school is a national institution with 150 campuses, while the other is an inner-city institution with campuses in two communities.
But the different schools with different default prevention campaigns are having success with the same tool: USA Funds Borrower ConnectTM.
In a recent webcast, Pete McEwen, campaign manager at ITT Technical Institute, shared his national school’s approach to debt management. Clem La Pietra, director, office of loan management for financial services at Monroe College, stepped the webcast participants through the default prevention process at his Bronx and New Rochelle, New York, school.
USA Funds Borrower Connect is a Web-based tool that automates borrower communication through telephone, letter and email campaigns, using loan information you upload from your various loan servicers. USA Funds® partnered with Today’s Campus magazine to present the webcast.
McEwen stressed that ITT Technical Institute strives to make default prevention a core competency whose value equals that of other student services.
Using USA Funds Borrower Connect has allowed the school to easily aggregate loan data that it previously had to rely on a variety of sources to provide. Reports in the tool permit ITT Technical Institute to track the effectiveness of its communication campaigns, conducted by an in-house team of employees focused on borrower outreach.
The school also can easily get a snapshot of its current and projected cohort default rates with USA Funds Borrower Connect, McEwen said. ITT Technical Institute has a default prevention approach whose results it tracks weekly, adjusting its forecasted results monthly.
USA Funds Borrower Connect has helped improve ITT Technical Institute’s default rates, allowing the school to “communicate and then act quickly and effectively to continue to drive those numbers down,” McEwen said.
Lowering default rates
Monroe College also is committed to staying in contact with student loan borrowers, La Pietra said. In his nine years at the school, he’s discovered that “getting a borrower on the phone when the borrower is delinquent is the most effective way of getting the delinquency resolved.”
The school uses USA Funds Borrower Connect to pull in student loan data, contact borrowers, and then evaluate the effectiveness of that communication and of the staff reaching out to borrowers.
“Our default rate was below the national average before” Monroe College began using USA Funds Borrower Connect in 2012, La Pietra said. “But now we’re trending at half of what our averages were. And I attribute that to USA Funds Borrower Connect.”
Hear McEwen’s and La Pietra’s complete presentations in the webcast recording. And read more about how ITT Technical Institute and Monroe College are working to prevent student loan default.
Contact USA Funds to learn more about USA Funds Borrower Connect.