USA Funds Debt Manager Can Help in Efforts to Lower Cohort-Default Rate

The new cohort year is only a few weeks away. Students who are at risk of defaulting on their loans have little time remaining to bring their accounts back into good standing before the current cohort year ends on Sept. 30. USA Funds^® helps schools stay in touch with student-borrowers and prevent default by offering the Web-based tool USA Funds Debt Manager^®.

USA Funds Debt Manager aids schools by tracking borrower and loan information with data that is refreshed weekly from the servicing systems. It also allows school-users to create customized reports and contact strategies with real-time data that can help schools identify those students who are most at risk of defaulting. This opportunity for additional contact with students on the verge of default can make a significant difference in efforts to prevent default in this cohort year and beyond. 

USA Funds Debt Manager’s ability to contact borrowers via e-mail offers school-users the benefit of immediately contacting groups most at risk. E-mails to borrowers can be customized with text that emphasizes — with increasing urgency — the importance of each communication regarding their loans. USA Funds Debt Manager saves the text of e-mail messages for future use. Schools also can contact their borrowers by phone or letter.

USA Funds Debt Manager offers reports that provide schools with the best- and worse-case scenarios for a school’s estimated cohort-default rate based on the current status of the school’s borrowers. Monitoring and tracking default-prevention efforts also can show how many loans have been converted to repayment from delinquency.

If you are interested in learning more about USA Funds Debt Manager, contact your USA Funds Services account executive. If you currently are using USA Funds Debt Manager and would like to learn more about effective ways to communicate with borrowers, contact your USA Funds debt-management consultant.