Four-D College Departments Team Up in Default Prevention

Four-D College, Colton, Calif., aims to lower its cohort default rate to 10 percent or less from its most-recent rate of 14.2 percent, and all the departments on campus are playing an active part in achieving that goal.

Michael Williams, director of operations, explained that the school already has made progress by addressing its retention issues. Since he and 11 other administrative staff and faculty attended a USA Funds^® retention workshop, they better understand the connection between retention of their students and the school's default rate: Dropping out before completing their studies is one of the primary reasons that students default on their education loans.

Achieving retention success through teamwork
Retention is improving in various areas of the school, thanks in part to teams from admissions, placement, financial aid, programs and default management. Rocio Garcia, director of financial aid, points to the best practices that Four-D College representatives and others shared at the USA Funds retention workshop.

"We learned a lot and were able to share with the rest of the faculty when we got back. The information from the workshop helped me convince others how default management pertains to every department on campus," she said.

One initiative that has proven effective in retention efforts is the formation of an "encouragement committee." This group comprises the program and placement directors, instructors and Williams. After early identification of students who are struggling with academics, attendance or social issues, the committee works to determine the root of the problems. In brainstorming sessions, the committee discusses possible solutions.

Linda Smith, Four-D College president, said the sessions are key to "growing the program, the school and retention."

"This is not a disciplinary process," she said. "It's a way to determine what's interfering with a student's ability to be successful and how we can help them stay the course."

The committee refers students with child-care or transportation issues to counselors, who conduct private sessions at no cost to students. The school even pays for car repairs and gas, if necessary.

Another way in which Four-D College is working to enhance student retention is by ensuring that faculty members exhibit more sensitivity and patience in working with new students, helping the students to overcome their initial fears and preparing them for academic success.

Using USA Funds default-prevention tools
Garcia, the school's financial-aid director, also puts the USA Funds Life Skills^® financial-literacy program to use. In one-on-one entrance-counseling sessions and group orientations, she focuses on information from Module 1, "Get a Grip on Your Finances: Smart Spending for Students" and Module 2, "Seek Out Financial Aid: Funding Resources and Financial Obligations" about the importance of budgeting and students' wants and needs. In exit-counseling sessions, Garcia uses components of Module 5, "Now That You Are About to Graduate: Taking Control of Your Life," to remind students of their education-loan-repayment obligations and the options available to them.

She uses Default Management System software, provided by USA Funds, to send letters to delinquent and defaulted borrowers. Program directors receive a monthly default-management report listing borrowers close to delinquency, and the directors contact the borrowers about making payments. Garcia explained that many directors have positive relationships with the borrowers, even after they leave school.

Margie Harris, employment specialist, uses USA Funds Life Skills Module 5 information to enhance sessions about resume development and job-interview skills. She has contacted local clothing retailers for assistance in teaching students how to dress appropriately for interviews; students receive discounts on the clothing as well.

Smith, the school's president, explained that Four-D College's focus is not just on repaying loans, but also on students' understanding the value and long-term benefits of paying back their loans. The staff and faculty share personal experiences with the students to make their point.

"We tell them, 'It won't hurt Four-D as much as it will hurt you when you want to buy a car or house and can't because you didn't pay back your education loans.' We're putting a value on it for students," she said.

For more information about USA Funds' products and services that can assist your school in its default-prevention efforts, contact your debt-management consultant or visit the USA Funds Web site.