1. Maximizing Default Prevention Efforts through Enhanced Student Loan Counseling Maria Luna-Torres, Director, Education Finance Initiatives, TG Raul Lerma, Executive Director, Financial Aid, El Paso Community College TASFAA Conference 2012

2. Objectives Explore ways to strengthen student loan counseling concepts Exchange best practices for delivery of loan counseling Share resources which maximize student’s understanding of borrowing

3. Promoting Responsible Borrowing Key ConceptsMessages Loan LimitsPer academic year Default ConsequencesAffects job prospects Origination Fees & Loan DisbursementsImpacts budget Repayment SchedulesSpecific payment

4. Promoting Responsible Borrowing Key ConceptsMessages Repayment PlansOptions available Interest ratesImpacts balance Half-time enrollmentStatus changes Purpose of loanEducation-related Deferment &ForbearanceChoice matters

5. Best Practices for Effective Counseling – Identify at-risk populations and provide targeted information (e.g. first year students) – Conduct combination of in-person and online sessions – For online counseling, make sure it’s interactive

6. Best Practices for Effective Counseling – Customize sessions with relevant information – Provide specific repayment schedules at Exit e.g based on student’s debt vs. school’s average indebtedness – Spot check reference information for accuracy

7. Best Practices, con’t – Provide handouts to reinforce material – Use written tests to ensure comprehension of concepts

8. Best Practices, con’t – Incorporate in-person sessions into other campus events for flexibility (e.g. orientation, weekend sessions, dorm meetings) – Take advantage of student-initiated contact – Notify students of various loan options

9. Best Practices, con’t – Educate campus-wide about basic loan concepts (e.g. default prevention committee)

10. Resources for Effective Counseling Comprehensive Student Loan Counseling Modules – A Good Start: Entrance Counseling for Student Borrowers – Before You Leave: Exit Counseling for Student Borrowers – Know What You Owe: Tracking Your Student Loans – Plan for Success: Preparing to Fullfill Your Student Loan Commitment

11. Department of Education & Other Resources Federal Student Aid Publications website – www.fsapubs.org www.fsapubs.org – Entrance Counseling Guide for Direct Loan Borrowers – Exit Counseling Guide for Federal Student Loan Borrowers Federal Student Aid – Online Entrance & Exit Counseling www.studentloans.gov www.nslds.ed.gov Online Counseling - Mapping Your Future® www.mappingyourfuture.org

12. Demonstration: Student Loan Counseling Modules

13. Comprehensive Student Loan Counseling

14. Workbook - “A Good Start”

15. Group Activity – “Staying on Track”

16. Student Quiz – Entrance Counseling

17. Workbook – “Before You Leave”

18. Group Activity – “Loan Repayment Solutions”

19. Student Quiz – Exit Counseling

20. Intermediate Counseling Modules– Assessment

21. Contact Maria Luna-Torres, Director Education Finance Initiatives maria.luna-torres@tgslc.org Student Loan Counseling Modules – Request Training http://www.tgslc.org/council/training-request.cfm

22. Title

23. © 2010 Texas Guaranteed Student Loan Corporation To order additional copies, or to request permission to reproduce any of the information provided, please call TG Communications at (800) 252-9743.