During the past year, USA Funds Borrower Connect InTouchSM has demonstrated success in curbing student loan defaults.
Colleges and universities that used USA Funds Borrower Connect InTouch for at least a five-month period to contact all of their past-due borrowers are projected to experience an average 5 percentage point reduction in their draft 2011 three-year cohort default rates, compared with their previous three-year rate.
USA Funds Borrower Connect InTouch offers schools a full-service default prevention staffing solution. On behalf of the school, USA Funds® conducts email and telephone communication with and counseling of borrowers during their grace period or when their payments become past due.
During the past year, USA Funds Borrower Connect InTouch assisted nearly 50,000 borrowers to support successful student loan repayment and improve institutional cohort default rates. Typical activities during a USA Funds Borrower Connect InTouch call include:
- Ensuring borrowers understand their loan obligations and responsibilities.
- Working with borrowers to establish and maintain an affordable and achievable loan repayment plan.
- Making sure borrower contact information is up to date.
- Promoting long-term student loan repayment success.
- If appropriate, conducting a three-way call with a borrower’s servicer to resolve payment issues.
Among the postsecondary institutions that have achieved default prevention success with the help of USA Funds Borrower Connect InTouch are the following, along with their success stories:
Contact your USA Funds representative for more information about USA Funds Borrower Connect InTouch.