Presenters: Cathy Mueller and André Maglione Going Beyond Regulatory Requirements

True or False? Default Prevention is a problem for the financial aid office. 2 ©2014 Mapping Your Future, Inc.

It’s a problem for the financial aid office, and it’s a problem for everyone… not just the financial aid office. True and False 3 ©2014 Mapping Your Future, Inc.

Impact of Default Country SchoolStudent Alumni 4 ©2014 Mapping Your Future, Inc.

Assessing the situation Knowing your situation and audience Going beyond regulatory requirements to reach borrowers Discussion Agenda 5 ©2014 Mapping Your Future, Inc. Summary Strategies Research Situation Plan Developing a default prevention plan

What is the Big Borrowing Issue All About? 6 ©2014 Mapping Your Future, Inc.

7 ©2014 Mapping Your Future, Inc. What is the Big Borrowing Issue All About?

8 ©2014 Mapping Your Future, Inc. What is the Big Borrowing Issue All About?

9 ©2014 Mapping Your Future, Inc. What is the Big Borrowing Issue All About?

Feds Higher, HESAA’s Lower & Lower 10 ©2014 Mapping Your Future, Inc.

11 ©2014 Mapping Your Future, Inc.

Appoint a leader Financial aid office staff Research, Plan, and Analyze Data Involve the entire campus Student profile Establish GoalsStrategize Counsel Engage Communicate Inform and establish contacts Measure and Evaluate Default Prevention Plan 12 ©2014 Mapping Your Future, Inc.

13 ©2014 Mapping Your Future, Inc.

Review the data - Do you know if your defaulters: Withdrew Were first generation? Were in a particular program of study? Research 14 ©2014 Mapping Your Future, Inc.

Sort by days delinquencyWork list ( s, letters, text, calls)Invite them to come into your office for a personal touch Know Your Delinquent Borrowers 15 ©2014 Mapping Your Future, Inc.

Low EFCEOF Students getting loansFirst Generation College studentsSpecific majorsAcademic or financial probations Findings 16 ©2014 Mapping Your Future, Inc.

Drops Academic probation withdrawals GraduatesCompleters Leaves of Absence At Risk Students 17 ©2014 Mapping Your Future, Inc.

18 ©2014 Mapping Your Future, Inc.

5 Strategies to Boost Default Prevention Go beyond the financial aid office Involve the entire campus – holistic approach Get others involved Target your audience Communicate Beyond regulatory requirements Increase effectiveness Counsel Interactive techniques Engage New ideas as audience and tools change Involve the entire campus Evaluate and Innovate 19 ©2014 Mapping Your Future, Inc.

20 ©2014 Mapping Your Future, Inc.

21 ©2014 Mapping Your Future, Inc.

Get Others Involved Seek supportExplain why Provide data/examples Acknowledge their expertise Assign responsibilities Reward progress Keep engaged 22 ©2014 Mapping Your Future, Inc.

23 ©2014 Mapping Your Future, Inc.

Two Types of Communication Proactive Preventing defaults by communicating with current students Reactive Working with borrowers in delinquent or default status 24 ©2014 Mapping Your Future, Inc.

Communicate PrepareMessagesFormatToolsTimelineResponsesMeasurement 25 ©2014 Mapping Your Future, Inc.

26 ©2014 Mapping Your Future, Inc.

What Students Want 27 ©2014 Mapping Your Future, Inc. Relevance Repetition Answers Negotiation Entertainment Visuals

Communication 28 ©2014 Mapping Your Future, Inc.

Communication 29 ©2014 Mapping Your Future, Inc.

Drops (three notices) Academic probation withdrawals Graduates/ Completers (two notices) Leave of Absence (track LOA expiration date) Grace Period Attack 60 day prior notices 30 day prior notices Repayment Option Notices Deferment/Forbearance Notices Entering Repayment Attack Grace Period of Repayment 30 ©2014 Mapping Your Future, Inc.

HESAA Delinquency/Default Aversion Strategy Automated Delinquency Notifications, provided to school monthly: Delinquency letters (Three letter sequence) –Delinquency letter #1 – 60 to 89 days delinquent –Delinquency letter #2 – 90 to 119 days delinquent –Delinquency letter #3 – 120 to 240 days delinquent Notifications – 90 days prior to default Call List of Delinquencies in Excel format List of Delinquent Borrowers Additional HESAA Service: Helping Hands letter and calling campaign process to reduce delinquency. Delivery of letters and calling lists: Monthly Adobe Acrobat files are ed from HESAA to the school’s designated contact. The contact then opens the files, prints and mails the letters to the borrowers. -The Excel file contains a call and list of all delinquent borrowers allowing the school to contact them directly. HESAA Delinquency/Default Aversion Strategy Automated Delinquency Notifications, provided to school monthly: Delinquency letters (Three letter sequence) –Delinquency letter #1 – 60 to 89 days delinquent –Delinquency letter #2 – 90 to 119 days delinquent –Delinquency letter #3 – 120 to 240 days delinquent Notifications – 90 days prior to default Call List of Delinquencies in Excel format List of Delinquent Borrowers Additional HESAA Service: Helping Hands letter and calling campaign process to reduce delinquency. Delivery of letters and calling lists: Monthly Adobe Acrobat files are ed from HESAA to the school’s designated contact. The contact then opens the files, prints and mails the letters to the borrowers. -The Excel file contains a call and list of all delinquent borrowers allowing the school to contact them directly. Additional Helpful HESAA Services Credit Counseling Seminars “REAL Money 101”. Mapping-Your-Future & school web integration for exit and entrance interviews. Additional Helpful HESAA Services Credit Counseling Seminars “REAL Money 101”. Mapping-Your-Future & school web integration for exit and entrance interviews. Grace Period 31 ©2014 Mapping Your Future, Inc.

HESAA Delinquency/Default Aversion Strategy Automated Grace Period Notifications provided to school monthly: Drop/Withdrawals/Less than Halftime letters (Three letter sequence) Grace period Start letter – 2 nd month Grace period Halfway letter – 3 rd month Grace period Final letter – 6 th month Graduate (Two letter sequence) Graduate Congratulation letter – 2 nd month Graduate Final letter – 6 th month Notifications Conducted for both Graduates and Drops Text Notifications Conducted for both Graduates and Drops HESAA Services in Grace: Grace Period Activities by HESAA Financial Aid Officers 30 days prior to expiration of grace period, phone calls are made to borrowers Letter sent explaining rights and responsibilities HESAA Delinquency/Default Aversion Strategy Automated Grace Period Notifications provided to school monthly: Drop/Withdrawals/Less than Halftime letters (Three letter sequence) Grace period Start letter – 2 nd month Grace period Halfway letter – 3 rd month Grace period Final letter – 6 th month Graduate (Two letter sequence) Graduate Congratulation letter – 2 nd month Graduate Final letter – 6 th month Notifications Conducted for both Graduates and Drops Text Notifications Conducted for both Graduates and Drops HESAA Services in Grace: Grace Period Activities by HESAA Financial Aid Officers 30 days prior to expiration of grace period, phone calls are made to borrowers Letter sent explaining rights and responsibilities Additional Helpful HESAA Services Credit Counseling Seminars “REAL Money 101”. Mapping-Your-Future & school web integration for exit and entrance interviews. Additional Helpful HESAA Services Credit Counseling Seminars “REAL Money 101”. Mapping-Your-Future & school web integration for exit and entrance interviews. 32 ©2014 Mapping Your Future, Inc. Delinquency Period

33 ©2014 Mapping Your Future, Inc.

34 ©2014 Mapping Your Future, Inc.

Comprehensive counseling and person-to-person counseling Collect updated data, by having students complete more often Use the non-regulatory required sessions to remind students of obligations and repayment options Supplement a group counseling sessionSupplement the Department of Education’s counseling 35 ©2014 Mapping Your Future, Inc. Counseling Enhancements

22 sessionsCustomized pagesReport optionsPrintable materials Online Counseling 36 ©2014 Mapping Your Future, Inc.

Direct Loan (English and Spanish) Perkins Direct Loan and Perkins combined Nursing Health Professions Direct PLUS Direct Loan and Direct PLUS combined Entrance Counseling Direct Loan (English and Spanish) Perkins Direct Loan and Perkins combined Nursing Health Professions Direct PLUS Direct Loan and Direct PLUS combined TEACH Grant Exit Counseling Regulatory Counseling 37 ©2014 Mapping Your Future, Inc.

Financial Literacy Grace Period and Repayment Loan Management Non-Traditional Private Loan Other Counseling Types Non-Regulatory Counseling 38 ©2014 Mapping Your Future, Inc.

39 ©2014 Mapping Your Future, Inc.

Member Resources Federal Student Loan Crossword Financial Literacy Crossword Financial Literacy Trivia Student Loan Repayment Crossword Engaging and Fun 40 ©2014 Mapping Your Future, Inc.

41 ©2014 Mapping Your Future, Inc.

Financial Awareness 42 ©2014 Mapping Your Future, Inc.

“I’m listening... if you’re telling me something I want to hear!” 43 ©2014 Mapping Your Future, Inc.

44 ©2014 Mapping Your Future, Inc.

Listen: Get Feedback 45 ©2014 Mapping Your Future, Inc.

Measure 46 ©2014 Mapping Your Future, Inc. Determines the effectiveness of efforts Identifies areas for improvement Provides ideas for innovation Track progress on rates Survey students Collect feedback Why? How?

Cathy Mueller Executive Director Mapping Your Future André Maglione Director of Client Services HESAA Questions? More Information? 47 ©2014 Mapping Your Future, Inc.