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Featured Articles...
Open Lines of Communication Key in Default Prevention
Kathy Bixby, Tom Quinn and Elise Sanders, USA Funds Services
Financial-aid counseling for students during their time
on campus is a critical element in lowering the risk of
future education-loan-repayment problems. From meeting
with students each time they apply for student loans,
to periodically updating students' addresses, there are
myriad opportunities to contact students to reinforce the
importance of sound debt management.
The following tips are offered for ongoing counseling
of continuing students:
- Counsel students each time they apply for education
loans. Advise them about how much they have borrowed,
as well as their rights and responsibilities as borrowers,
and discuss how much debt they might accumulate
before leaving school.
- Each time that a student applies for a loan, check the
address on the loan application. Whether you're reviewing
a new application or an existing Master Promissory
Note (MPN), the address provided should be one where
the student will receive mail after leaving school - not a
temporary address. Also check the e-mail address, if
applicable.
- At the end of each year, mail students reminders that
the financial-aid office is available to answer their questions.
Mark the envelopes with the phrase "address
correction requested." These reminders keep students
informed about where to turn for help, and they help
financial-aid administrators keep students' address
information current.
- Meet with any student whose address changes.
Emphasize to students the importance of keeping their
lenders informed about their changes of address.
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