Spring 2003 Online Publication    





Click here for the updated Best Practices in Debt Manangement Manual.

Default-Prevention Checklist for Students’ Grace and Repayment Periods
Submitted by: Linda Athearn, Account Executive, USA Funds Services

Because each education-loan borrower has unique circumstances, schools’ default-prevention plans for individual students should be tailored accordingly. USA Funds®’ online Best Practices in Debt Management Manual offers the following checklist to help financial-aid administrators assess their default-prevention efforts for students in their grace and repayment periods.

____ We have developed a procedure to determine when students leave school.

____ We have developed a procedure to make it easy for students to re-enroll.

____ We have created a campaign to make contact with borrowers shortly after they enter their grace period.

____ We have developed or acquired tools for the grace-period campaign to contact borrowers.

____ We have created a process for contacting delinquent and defaulted borrowers.

____ We have developed or acquired the tools for the campaign to assist delinquent or defaulted borrowers.

____ We have developed a skip-tracing procedure to obtain better contact information for borrowers who we have been unable to reach.

____ We make use of services and reports from our education lenders, servicers and guarantors to support our borrower-contact efforts.

More suggestions and tools for helping students manage debt throughout the life cycle of their loans is available in the updated Best Practices in Debt Management Manual. To access the manual, go to www.usafunds.org/debt_management/best_practices_manual.htm on the USA Funds® Web site.