UNCF ICB ACCREDITATION AND STUDENT LOAN DEBT MANAGEMENT INSTITUTE

1. UNCF ICB ACCREDITATION AND STUDENT LOAN DEBT MANAGEMENTINSTITUTE Default Prevention Best Practices presented by Antonio Holloway (Huston-Tillotson) and Valentino Bryant (Shaw University)

2. What is Default? Failure to repay a loan according to the terms and conditions agreed upon when the borrower signed the Master Promissory Note. Default occurs when the borrower becomes 360 days delinquent with payments The consequences to the borrower and the institution are severe.

3. Consequences of Default for Schools High Cohort Default Rates can- Negatively reflect school quality Result in Provisional Certification Result in loss of Title IV eligibility Minimize access to Private Loans

4. Seven Reasons Students Default Entered Military Service Low Wages / Income Trouble With Personal Relationships Unemployed High Medical Bills Married Someone With High Student Loan Debt Lack of Knowledge

5. What Huston-Tillotson University Have Implemented to Lower Default Rates (In-School Efforts) Enhanced Entrance Counseling Provide Financial Literacy and Scholarship Workshops Complete in-school deferment forms for prior loans Explain Satisfactory Academic Progress (SAP) Encourage students to pay accrued interest while in school Require Financial Literacy for all freshmen and transfers In-person exit interview for official withdrawals

6. Withdrawn Students Efforts Encourage student to re-enroll Implement a withdrawal process where student must see a retention officer In-person exit interview for official withdrawals Mail exit package to unofficial withdrawals Use servicer to mail grace letters Use servicer to contact borrowers that withdraw and become delinquent on loans

7. Grad Student Efforts Require in-person exit counseling for graduates Require financial literacy for graduates Use servicer to mail grace letters Use servicer to contact graduates that become delinquent on student loans Provide institution contact information to all graduates

8. Partner With External Agencies Collaborate with outside agency on writing a default prevention plan (TG assist Huston-Tillotson) Seek grant opportunities to help defray the costs for equipment, workshops, and additional employees, etc. (Huston-Tillotson received $100,000.00 from USA Funds)

9. What Shaw UniversityHave Implemented to Lower Default Rates

10. Three Phase Approach

11. “Where Are We?” and “How Did We Get Here?” • We worked with the Office of Strategic Planning Institutional Research & Effectiveness (OSPIRE) • Based on 2009 2 year Draft Rate (23.1%) • 233 Student Defaulted • 183 Withdrawals • 49% Freshmen; 29% Sophomore; 13% Junior; 14% Seniors and 1% Grad Students • Low Retention Rate = High Default Rate and High Retention Rate = Low Default Rate

12. Creation of Default Prevention/Retention Committee

13. Strategic Implementation Operation Default Rate Reduction: Phase I Stopping the Monument Adjusted two staff members work hours Monthly phone Blitz (one night a month all FA counselors stay late to make calls to delinquent borrowers) Mass mailing via USPS and emails Social Media

14. Strategic Implementation; Phase II: Financial Literacy/Awareness Student Outreach Faculty/Staff Outreach • New Student Orientation • Breakout sessions for parents and incoming freshmen • Early Alert System • During Freshmen Orientation, students complete an online survey, which allows the university to identify potential At-Risk Students • Monthly Newsletters • Financial Literacy Workshops • Implementation of USA Funds Life Skills • Development of Student Peer Financial Literacy Mentors • Monthly Newsletters • Attend Faculty Meetings once per semester • To promote Default Awareness • Partnered with some faculty members who allowed us to participate in their class discussions about Financial Literacy

15. Contact Information Valentino Bryant Shaw University Default Prevention Administrator 919-546-8434 vbryant@shawu.edu Antonio Holloway Huston-Tillotson University Director Financial Aid 512-505-3031 aholloway@htu.edu