This default management plan contains some of the strategies used by the University of Essex to help our American Loan Students understand the responsibility of borrowing loans to fund their degree studies. The purpose is to reduce the number of students who default on loan repayments.
1. Entrance and counselling
All first time borrowers of Direct Loan program, new students or students changing study path are required to undertake entrance counselling where students are advised about:
- how the master promissory note works,
- the importance of repaying the loan,
- the consequences of default, and
- sample monthly repayment amounts
2. Early identification and counselling for students at risk of progression/withdrawal
Departments are responsible for identifying students at risk of withdrawing and counselling them accordingly with a view to retaining those students.
Students who withdraw or are considering withdrawing prior to the completion of their programme are interviewed by a member of their Department. They are provided with guidance at that interview and every effort will be made to resolve any issues to prevent the student withdrawal. US students who have withdrawn are contacted, and provided with information on Title IV refunds and request that they complete Exit Counselling.
All Federal Direct Loan students are directed to the mandatory Foreign Schools Consumer Information. Academic progress and enrolment status are held on the central student record system which is accessible by all relevant offices across campus including the office that disburses funds and authorise payments.
In addition we request confirmation from the students’ Department of their satisfactory academic progress before disbursement of funds.
Up to date contact information for both the student and next of kin is obtained from students at registration.
The University has effective procedures in place to ensure accurate and timely communications across the relevant departments. This ensures the relevant aid is disbursed on time and to the correct students and is compliant with Direct Loan regulations.
4. Exit counselling
Graduating and withdrawing students are advised that they must undertake Exit Counselling as a condition of borrowing Federal Direct Loans.
Students must confirm to the Funding Team that they have completed exit counselling and a copy is retained in the student file.
5. Timely and accurate enrolment reporting
The University of Essex will ensure that accurate information on enrolments including updates are submitted to the National Student Loan Data System (NSLDS) at regular intervals throughout the year.
6. Analyse defaulted loan data
Defaulted loan data is monitored to identify defaulting borrowers and to analyse the reasons for defaulting. The Loan Record Detail Report (LRDR) is reviewed to determine if there are common characteristics among defaulters.
Any student defaulting on their loans and who contacts the Funding Team will be directed to their individual Loan Servicer and provided with contact details to discuss repayment options.
7. Tools and activities for schools
The University of Essex will make use of the recommended tools listed below to ensure data accuracy and use effective loan counselling and default prevention management techniques to aid students and the University.
8. Loan counselling
9. Enrolment reporting and data accuracy
10. Default prevention
11. General connections/publications