Student Loans
Statement for Stafford/Alternative Loans/Americorp:
Process and Award Direct Federal Stafford Loans and Alternative loans to students who I receive loan requests from. Ensure student’s eligible at time of awarding. Verify student’s NSLDS. Maintain Direct Federal Loan Reconciliation monthly. Resolve any Direct Federal loans not reported on COD. Resolve Direct Federal loans that are on hold or rejected. Troubleshoot when a loan does not pay over to the student’s MyWNC account. Resolve any Direct Federal Subsidized Usage Limit. Resolve Direct Federal loan aggregate limits. Send Exit counseling as required. Keep track of actions on files received from COD and queries regarding Federal Loan reconciliation, hold and rejects, Subsidized Usage Loan Aggregate. Make adjustments on COD when necessary. Put out checklists when necessary. Go through the DIAA file at the beginning/middle of the following semester to ensure that loan disbursements not disbursed have been cancelled. Ensure Item Types for all Loans/Americorp are correct each year with correct disbursement dates. Ensure loan fee is setup for each item type as required. Process Americorp requests as received through e-mail. Ensure student is eligible for Americorp at time of processing. I am also responsible for retrieving all loan files and pell files through EdConnect from COD and upload them into PeopleSoft. I am responsible for transmitting loan information and pell information from PeopleSoft to EdConnect. I am responsible to ensure none of these COD files are missing.
GOAL: Continue to collaborate with Staff and Director on the process of all Loans and Americorp. Stay updated with Federal Regulations. Continue to enhance skills in processing of loans. Assist students/parents on processes when needed.
In addition, I collaborate with EdFund providing them information to help with WNC’s Cohort Default Rate. Each month, I receive two reports transmitted through EdConnect from COD. A staff member then uploads the files into EdFund’s software. E-mails are generated to each student, monthly, who are behind in their loan payments. EdFund reaches out to each student working with them to get out of default and keep them out of default.
Each year at the end of September – School’s Cohort Default Rates are sent to them. I pull theses files in from COD through EdConnect and upload them into software that allows me to see the students that are included as being in default for the years stated. I go through each student to ensure that there was no error made and they have truly defaulted during said time. If possible, I have to ability to argue a decision on a student – in hopes that that student can be taken out of the default equation.
GOAL: Continue to work with Staff member, Director and EdFund and their software in sending important information to student’s to let them know loan payment options to help them get out of default. Continue working with EdFund in order to lower WNC’s cohort default rate.
The SL SWOT is available to view below or at the the following link: https://docs.google.com/spreadsheets/d/1-vBwi70hweoWKdf-2j8gSIkjC-DEQtGqF4Df6fjZv8o/edit?usp=sharing.
Loan Default Rate - Self Evaluation
The FAO has provided bullet pointed successes and challenges for the last four official default rates (FY 2011-FY 2014) and our current draft default rate FY 2015, which will be official in October 2018.
i. Key Challenges:
FY 2015 – Draft Cohort Default Rate= 20.2
Students who went in to repayment during FY 2015 and defaulted by September 30, 2017.
Successes:
- College is contracting with Student Connections to provide outreach and default resolution counseling to student borrowers who have defaulted on a payment.
- Financial Assistance staff e-mail students who are in their Grace Period the contact information for their loan servicer to encourage the student to review their repayment options.
- Economy is strong, unemployment is low and borrowers are able to pay back loans.
Challenges:
- Some students still over-borrow, even after completing Entrance Counseling.
- The college is still experiencing impacts of prepackaging of students loans in Award year 2011-2012 for student who when in to repayment in FY 2015.
- Not all employment prospects provide adequate income to cover increasing living costs and student loan repayment not always the priority.
FY 2014 – Official Cohort Default Rate = 27.4
Students who went in to repayment during FY 2014 and defaulted by September 30, 2016.
Successes:
- Less overall borrowers used in the calculation from FY 2013, meaning less students relied on borrowing.
- Implemented the new default prevention efforts using USA Funds/Borrower Connect.
Challenges:
- Significant less borrowers overall from the FY 2013 rate, therefore denominator was lower (140/510 vs. 135/644).
- The college was contracted with SALT for default prevention programs in 2012-2015. The default prevention programs from SALT did not meet the needs of the WNC student population.
- The college continued experience impacts of prepackaging of students loans in Award year 2011-2012 from student who went into repayment in FY 2014.
- Not all employment prospects provided adequate income to cover increasing living costs and student loan repayment not always the priority.
FY 2013 – Official Cohort Default Rate = 20.9
Students who went in to repayment during FY 2013 and defaulted by September 30, 2015.
Successes:
- Economy was improving and borrowers are able to pay back loans.
Challenges:
- The college experienced impacts of prepackaging of students loans in Award year 2011-2012.
- The college was contracted with SALT for default prevention programs in 2012-2015. The default prevention programs from SALT did not meet the needs of the WNC student population.
- Not all employment prospects provided adequate income to cover increasing living costs and student loan repayment not always the priority.
FY 2012 – Official Cohort Default Rate = 26.6
Students who went in to repayment during FY 2012 and defaulted by September 30, 2014.
Successes:
Challenges:
- The college experienced immediate impacts of prepackaging of students loans in Award year 2011-2012.
- The college was contracted with SALT for default prevention programs in 2012-2015. The default prevention programs from SALT did not meet the needs of the WNC student population.
- The economy was still improving, however not all employment prospects provided adequate income to cover increasing living costs and student loan repayment not always the priority.
FY 2011 – Official Cohort Default Rate = 22.0
Students who went in to repayment during FY 2011 and defaulted by September 30, 2013.
Successes:
- Students in this cohort most likely were required to attend a mandatory Loan Orientation, which provided additional borrowing information.
Challenges:
- The college used internal staff to provide default counseling.
- The college experienced more borrowers during this cohort period due to a struggling economy.
- The economy continued to struggle and not all employment prospects provide adequate income to cover increasing living costs and student loan repayment not always the priority.