Becky Powell-Default Aversion Coordinator Ann Isackson-Director of Financial AidGrand Rapids Community College

June 2015

* Draft Rate – Final Rate Available September 2015

Year Students inRepayment

Students in Default

Cohort Default Rate

2008 2320 450 19.3%

2009 2579 565 21.9%

2010 3125 814 26%

2011 4270 1131 26.4%

2012* 5667 1403 24.7%

• Enrollment spike due to national recession and high unemployment rates in Michigan

• Lack of student preparedness, persistence and retention

• Limitations on the ability to deny loans to high risk borrowers

• Enrollment reporting errors

• Auto packaging student loans

2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09

Applicants Awarded Loans

15,666 17,656 18,548 18,997 18,800 7,250 5,596

Disbursed Loans 6,661 7,809 8,998 9,292 9,423 6,475 5,193

Loan AmountTotals

$17.3M $20.7M $29.9M $30.9M $30.4M $17.5M $17.6M

• Business & Finance• Counseling• Enrollment Mgmt.• Financial Aid• Institutional Research

• President’s Office• Provost• Student Affairs• Student Records• Student Success

& Retention

• Designate personnel and resources necessary to develop default management plan

• Contract with a 3rd party servicer for delinquency outreach and financial literacy

• Enhance enrollment retention efforts

• Analyze delinquent and defaulted borrower profiles

• 85% were Pell eligible

• 52% had an EFC of 0

• 55% had a HS GPA of 2.49 or lower

• 38% were on academic probation

• 46% were Caucasian; 40% African American; 8% Hispanic; 1% Native American; 1% Asian; 4% not identified

• 93% did not complete their degree

Average CreditsAttempted

Average Credits Completed

Average Cumulative GPA

Average Course Completion Rate

34 17 1.39 37%

• Develop a holistic approach which:• Involves cross-campus collaboration

• Focuses on financial literacy

• Leverages support of 3rd party servicer and default aversion coordinators

• Positions college as an ally, helping students make solid education-related financial decisions

• Includes layered communication and outreach at touch points throughout the student life cycle

• New Student Outreach• Develop CRM messaging to new and prospective

students focused on paying for college and responsible borrowing; develop Paying for College microsite

• Incorporate financial literacy components into in-person and online orientation

• Build partnerships and create buy-in of faculty

• Introduce financial literacy into all first year experience courses

• Returning Student Outreach• Develop a student leader peer mentoring program

• Leverage texting and CRM software to deliver informational messaging to students• At time of loan award and disbursements• During SAP warning semester• When student has attempted between 30 and 40 credits• When student is nearing aggregate loan limits

• Integrate financial literacy materials into academic probation success workshop

• Departing Student Outreach• Identify and connect with students for whom return of funds calculations have been completed

• Provide loan counseling and repayment information at annual Gradfest event

• Pilot in-person exit loan counseling

• CRM and text messaging triggered by petitions to graduate, transcript requests, return following academic suspension

• Delinquency Outreach• Use of NSLDS reports to identify delinquent borrowers

• Contract with ASA $ALT for delinquency contact and resolution

• Develop process to ensure updated student contact information

• Additional phone, text, email and snail mail outreach by default aversion coordinators

http://ifap.ed.gov/docs/CallQRef.pdf

http://ifap.ed.gov/DefaultPreventionResourceInfo/

https://financiallit.org/

https://www.creditcardinsider.com/learn/definitive-guide-student-loans/

Becky PowellDefault Aversion CoordinatorGrand Rapids Community College

Phone: (616)234-3164Email: rebeccapowell1@grcc.edu

Ann IsacksonDirector of Financial AidGrand Rapids Community College

Phone: (616)234-4059Email: aisackson@grcc.edu