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Dave Macoubrie Vice President of Repayment Solutions

How High is Too High? Focusing Your Limited Resources to Effectively Reduce your Rising Cohort Default Rate. Dave Macoubrie Vice President of Repayment Solutions. Objectives. Understand the 3-year default rate calculation. Goal and expectation alignment. Planning for action

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Dave Macoubrie Vice President of Repayment Solutions

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  1. How High is Too High? Focusing Your Limited Resources to Effectively Reduce your Rising Cohort Default Rate Dave Macoubrie Vice President of Repayment Solutions

  2. Objectives • Understand the 3-year default rate calculation. • Goal and expectation alignment. • Planning for action • Activities while students are in school. • Grace period transition. • Successful repayment assistance techniques. • Evaluating success. Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  3. Repayment Success Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  4. What are our challenges? Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  5. Trends in National Default Rates Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  6. 2009 3-year Cohort Default Rates Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  7. Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  8. Understanding the Cohort Default Rate Calculation

  9. Cohort Repayment (Denominator) Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  10. Cohort Default (Numerator) Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  11. 3-year Rate Formula September 30, 2011 October 1, 2010 September 30, 2012 September 30, 2013 Enter Repayment Track Default Status Track Default Status Track Default Status FY 2011 3-year CDR Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  12. Goal Alignment Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  13. Where can I make a difference? 2012 2013 2011 Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  14. 3-Year Cohort Default Rate Schedule Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  15. Training (In-School) Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  16. Training (In-School) • Entrance and Exit Counseling • Campus-wide team support • Financial Education • Extenuating circumstances • Data Analysis & At-Risk students Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  17. Example Kick-off Event: Oct. 3, noon. Meet peer financial counselors, get information on how to manage student loans, and enjoy games, free food and prizes. Goal and expectation alignment. Ice Cream Social: Oct. 12, noon. Learn about loan repayment options. Lunch and Learn: Oct. 19, noon to 1 p.m. Have a free lunch with loan repayment experts from the Financial Aid Office. Learn about student loan repayment strategies, including Income Base Repayment and Public Loan Forgiveness. Wonderful Wednesday: Oct. 24, 11 a.m. to 2 p.m. Meet financial counselors and enter a drawing. Information Session: Oct. 31, noon to 2 p.m. Peer financial counselors will discuss money basics; a money management slideshow will be provided. Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  18. Race Day (Grace) Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  19. Race Day (Grace) • Send E-mails • Make Telephone Calls • Offer Financial Education • Use the NSLDS Early Stage Delinquency Assistance report Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  20. Riding the Repayment Race NSLDS DELQ01 Report Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  21. Who can I help? • Do I work with all delinquent borrowers or only those that are in active cohort years? • How many days of delinquency do I allow to pass before I start helping? • What efforts do I give to PLUS and PLUS Grad borrowers? • If this borrower is in the cohort denominator and is delinquent, but can’t default by then end of the year, what efforts do I provide? Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  22. How do I help? • Send E-mails • Protect Personally Identifiable Information • Use multiple addresses when possible • Allow them to “op-out” if they choose • Include a telephone number they can call back to • Include self-help websites if you have them Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  23. How do I help? • Send letters • Can include Personally Identifiable Information • Include the servicer name and telephone number for them to call directly if they choose • Include a telephone number they can call back to • Include self-help websites if you have them • Include a personalized signature line if possible • Try different types of enveloped and colors to entice them to open. Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  24. How do I help? • Make Telephone Calls • Verify identity before providing any information • Have the servicer name and telephone number quickly available • Call at different times of day and days of week. • Provide a call back number when you leave messages • Have forms ready to be e-mailed • Conference call student with servicer when possible Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  25. Final thoughts? • How will you track efforts? • How do you measure success? • Do you have the right number of staff and the optimal hours of Operation? • How will you train staff initially and ongoing? • Do you have security in place to protect your staff? Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  26. Crossing the finish line Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

  27. Questions?

  28. Contact Information Dave Macoubrie Vice President of Repayment Solutions 402.479.6867 DaveM@Inceptia.org Inceptia.org Follow us on Twitter | @Inceptia

  29. Thank you

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