TG Default Prevention Training Program

10/28/2011
Borrowing and default on the rise
Many schools depend on federal student aid
Schools held accountable for repayment
Your school wants your help in preventing default
Key to college ─ student loans
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How do we measure repayment success?
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?
Getting granular ─ the new CDR calculation
Why is default a big deal?
How can you help?
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Low‐interest
Borrowed from federal government or lender
The most common
type of federal
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student loan ─
the Stafford loan
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Available to undergrads d
d
and grads enrolled half time or more
Six‐month grace period
Begins after graduation,
withdrawal, or drop below half‐time enrollment
The most common
t
type of federal
ff d l
student loan ─
the Stafford loan
Different repayment plans
ifferent repayment plans
Offer flexibility according to need
Vary by period, monthly amount
Cohort
Cohort default rate (CDR)
Stafford loan borrowers
who enter repayment
within a given federal
fiscal year (FY)
Percentage of cohort that defaults within a specific period of time:
2‐year CDR: within the next fiscal year
3‐year CDR: within the
next two fiscal years
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for
Borrowers
Damaged credit
Loss of federal student aid eligibility
aid eligibility
Wage garnishment, court costs, collection costs, and more
for
Schools
Provisional certification or loss of Title IV eligibility
Negative publicity
Time and resources to reverse high rates
Learn more about your school’s initiatives
Promote default prevention as you can
Find out consequences of high CDRs and rewards of low rates
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Talk to a TG default aversion consultant
about your default prevention needs
Phone − (800) 252‐9743
E‐mail − defaultaversion@tgslc.org
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