USA Funds Debt Manager Helps Jackson State University Lower Default Rate

Jackson State University in Jackson, Miss., achieved a 60-percent reduction in its cohort-default rate in the last year, with the help of USA Funds Debt Manager^®.

Taronta Stokes, the school’s default manager and debt counselor, uses USA Funds Debt Manager to send letters to students who are delinquent in repaying their student loans, to track phone conversations with these students, and to create reports to help him manage default-prevention activities.

“I like the convenience of using USA Funds Debt Manager,” he says. “It’s my one-stop shop.”

Stokes estimates he sends about 200 letters monthly, most of them going to students who are 60 days or more delinquent on their student loans. Many times the students just need the basic information to get back on track repaying their loans.

“They need help with finding out where their loans are and how much they have borrowed, and with obtaining contact information for their lenders,” he says. “They’re shocked that I can quickly access all of that information.”

Having all of the accurate information at his fingertips helps him show students that the school cares about them and wants to help them. “I’m not viewed as a bill collector, so they’re very receptive to me,” he says. “They appreciate the help.”

USA Funds Debt Manager is a Web-based tool that helps financial-aid professionals connect with student-loan borrowers during school and after graduation, to help prevent student-loan defaults.

Stokes, who has used USA Funds Debt Manager for two years, says he acts as a liaison between the student and lender and works to make sure that students get the appropriate paperwork filed as quickly as possible.

“I’m here to assist students in understanding the terms and responsibilities and what’s expected of them,” he says, noting that he discusses repayment options with students and assists in faxing or printing documents if they don’t have access to them.

Nearly 8,000 students attend Jackson State University, one of the nation’s Historically Black Colleges and Universities. About 80 percent of undergraduate and graduate students use some sort of financial aid.

By using USA Funds Debt Manager and working closely with the school’s lenders, Stokes has been able to lower the school’s cohort-default rate to 2.8 percent, the school’s draft rate for 2005. Jackson State University’s 2004 cohort-default rate was 7.1 percent. In the next month Stokes will begin using USA Funds Debt Manager to communicate with borrowers by e-mail as well.

“USA Funds Debt Manager has saved me a lot of time — four or more hours each week,” Stokes says. “It only takes about 10 minutes to update and print letters.

“I have more time to see students in person, and I can make more calls or return more calls.”

For more information about USA Funds Debt Manager, contact your USA Funds^® debt-management consultant.