1. Developing a Financial Literacy and Default Prevention Program Presented by: Will Lindsey FedLoan Servicing

2. Why create a program? Preparing your students for financial success during college will help them to be successful after college. Prepared students will be more likely to: –Successfully repay their student loans. –Advocate for the value of higher education. –Become active alumni.

3. Where do I begin? Establish a team of resources on your campus. Create common themes through simple, meaningful messages. Use relatable examples and help students create their own. Implement a diversified approach. Track your success with measurable objectives.

4. Getting Started In School Repayment Delinquent Approach program building from the student’s perspective. Financial literacy is the on-campus aspect of your default prevention program. It’s a crucial first step.

5. In School - Campus Involvement Your administration and faculty could be impacted by your school’s high Cohort Default Rate. Make them part of the solution!!! Create a team on your campus which meets regularly to strategize and discuss initiatives.

6. How do I involve other offices on my campus? Establish a team including: –Financial Aid Staff –Career Counseling Center –Faculty (Finance, Marketing, etc.) –Resident Life Staff –Greek Life/Social Groups –Athletic Clubs –Political Organizations –Academic Associations –Students

7. How do I engage my students? Consider a diversified approach –Personalized communications on their total indebtedness –Social media (Facebook, Twitter, etc.) –In-person sessions –School publications –Supplement existing courses/programs, such as entrance counseling and orientation –Peer mentors/alumni buddies

8. What should I cover? Understanding Financial Aid Budgeting –Assess their financial situation –Identify needs vs. wants –Understand their financial behaviors –Create a plan for the future Time Management Using Credit Wisely

9. How do I measure success of on-campus initiatives? Set specific goals for each event and initiative Gauge student participation Survey students for feedback Monitor behavioral changes –Reduced overborrowing –Reduced loan default

10. Returning Students – Before You Owe Encourages students to record their loan balance and servicer information before they take on additional debt. Worksheet found at MyFedLoan.org/schools on our Publications page.

11. Entering Grace - Before You Go Provides students with a convenient location to record the information they learn when reviewing their loan portfolio at Exit Counseling. Worksheet found at MyFedLoan.org/schools on our Publications page.

12. Targeting At-Risk Students Review prior defaulters at your school to identify common characteristics. –Withdrawn students –Transfer students –Participants in particular programs of study –SAP students –Students who borrowed above the cost of attendance

13. Delinquent Borrower Communications In-school –Meet with “high-risk” students, based on your research –Encourage small, manageable payments while in school Grace –Send reminder to students of approaching payments –Make phone calls to “high-risk” students Repayment –Make phone calls to students ending a deferment/forbearance –Send letters/emails to early stage delinquent students –Make phone calls to late stage delinquent students

14. Delinquent - NSLDS Resources Use the NSLDS Delinquent Borrower Report to produce letters to delinquent borrowers who have loans serviced by any federal servicer. More information and instructions found at MyFedLoan.org/schools on our Training page.

15. Setting a Goal Set a target default rate for your institution. –Identify the maximum number of defaults to meet your target. –Project your rates throughout the year by monitoring current defaulted borrowers and borrowers over 300 days delinquent. –Control your three-year rate by contacting your two-year defaulters and encouraging rehabilitation.

16. Measure Success Categorize your efforts, track your success, and make adjustments. Late-Stage Delinquency Students - Total Students (100) Sample Size Effort Responded to effort Resolved delinquency through payment Resolved delinquency through other means 50Email15 (30%)7 (47%)8 (53%) 50Phone Call30 (60%)10 (33%)20 (67%) High-Risk Students - Total Students (90) Sample Size Risk Factor Made in-school payment Enrolled in automatic payments Non-delinquent 50Transfer5 (10%)15 (30%)45 (90%) 40SAP2 (5%)15 (38%)30 (75%) Establish an action plan and follow the students targeted to determine their success.

17. Take Action What are you doing today for financial literacy and default prevention? What would you like to start immediately? What changes would you like to implement over the next six months?

18. Questions? Want to learn more? Contact your sector representative!