Institutional Strategies to Improve Government Student Loan Repayment

Report Submitted to Merv Scott Director, Student Services Branch Ministry of Advanced Education Province of British Columbia

Jennifer Orum March 31, 2006

Institutional Strategies to Improve Government Student Loan Repayment
Table of Contents
Page Introduction Part 1: Factors That Play a Role in Government Student Loan Defaults Part 2: Improving Government Student Loan Repayment School-based Default Prevention Strategies: US Context Improving Government Loan Repayments: Canadian Context • • • British Columbia Post-secondary Institutions Selected Canadian Post-secondary Institutions Provincial/Territorial Governments 22 41 51 10 2

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Institutional Strategies & Practices for improving Loan Repayment • • • • Before post-secondary Early stages of Enrolment In-school & Late Stages of Enrolment After student leaves school 62 64 67 74

Appendices: A. Preventing Government Loan Defaults: Selected References Additional web-based default behavior resources for Financial Aid Administrators B. Selected ‘Tools’ for Use in Post-secondary Institutions 76 94

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Institutional Strategies to Improve Government Student Loan Repayment
Introduction
Given the growing emphasis on default prevention, particularly within the context of the pan-Canadian Designation Policy Framework approved by the Council of Ministers of Education in April 2003, all partners in the student loan process are paying increased attention to loan repayment rates. The federal and provincial governments, as well as service providers, all play key roles in the loan process and have a responsibility and interest in maintaining the integrity of the student loan system. Our post-secondary institutions also play an important role in this system and clearly have an interest in improving the loan repayment rates of their students. Research in student government loan defaults over the past decade has suggested that successful completion of a student’s post-secondary program has a direct relationship to loan repayment behavior, as does income once the student leaves school. Thus, ‘student success’, both in the student’s program, and when they leave post-secondary for the workforce, are being seen as key variables in limiting defaults on government student loans. This report endeavours to identify strategies and practices being used in colleges, universities and institutes to directly or indirectly increase the government loan repayment rates of their students, including practices intended to increase student retention and completion rates. The purpose has been to create an inventory of default prevention and related ‘student success’ practices, as a useful resource for post-secondary financial aid administrators. After summarizing the recent research into factors related to loan repayment behavior, information is provided on the American context and the many systemwide initiatives directed at increasing loan repayment rates in the United States. Current strategies and practices in place at British Columbia institutions as well as selected ones across Canada are then described, followed by a summary of developments at the provincial/territorial government level. A final summary is given of institutional approaches, categorized into (a) prior to post-secondary; (b) early stages of enrolment; (c) in-school and late stages of enrolment; and (d) after students leave school. Two appendices are included: A - Selected References Re: Preventing Government Loan Defaults and Additional Web-based Default Prevention Resources for Financial Aid Administrators. Then B - Examples of Selected ‘Tools’ for Use in Post-secondary Institutions.

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Factors That Play A Role in Government Student Loan Defaults
Introduction The purpose of this review is to identify factors that play a role in government student loan defaults. It will attempt to identify those behaviors or conditions that appear to precede (or are concurrent with) borrowers not following through with their obligations to repay. This understanding will provide helpful background to formulating strategies that might increase the repayment rates on government student loans.

Cause & Effect Versus Correlations Traditional cause and effect research generally involves making a prediction or hypothesis about behavior and then testing out that hypothesis. It usually has an experimental design that involves manipulating variables in specific ways to isolate causal relationships. Often such studies have a ‘control group’ for comparison purposes to assist in isolating what is actually a cause for a particular result. This is a method of controlling all variables except the ones of interest. Correlation research endeavors to determine how much of a relationship exists between variables. It can’t establish whether or not there is a cause and effect relationship, that ‘X’ caused ‘Y”, rather it can identify that ‘Y’ occurs at the same time or following ‘X’. Knowing that ‘X’ occurs can therefore help predict if ‘Y’ will happen, even if we don’t know that ‘X’ causes ‘Y’. Most of the studies into government student loan default behavior are correlation rather than cause and effect research. Researchers have attempted to determine what factors appear to occur at the same time or preceding the occurrence of loan defaults. Rarely does the experimental design allow one to conclude that ‘X’ condition or behavior or characteristic definitely causes ‘Y’ (default). They endeavor to establish that certain conditions ‘X’ and ‘Y’ appear to occur either before or during default behavior. This still provides very useful information, since being able to identify antecedent conditions for defaults can assist in predicting when they are likely to occur, even when a causal relationship cannot be established directly. Actions can then be taken to target specific groups of students or situations, with the objective of hopefully making default less likely to occur.

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Factors Which May Play A Role in Defaults The categories chosen are, for the most part, those summarized in the comprehensive literature review on default by Robin McMillion (2005, Texas Student Loan Corporation), but organized in a slightly different way. References to research within these categories include both studies identified by McMillion, plus others. A fuller description of research referred to in this section can be found in Appendix A by researcher/author name.

1. Borrower characteristics These refer to characteristics students have when they enter post-secondary education. 1.2 Gender Gender has been found in some studies to relate to default behavior, with men generally more likely to default on their student loans than women. (Flint 1996) Three studies have found default not related to gender. (Christman 2000; Lochner & Monge-Marango 2003; Harrast 2004) 1.3 Age Several studies have indicated that older students are more likely than younger students to default. (Flint, 1996; Christman 2000; Harrast, 2004) 1.4 Ethnicity While some studies have shown that students from certain ethnic backgrounds may be more likely to default (Volkwein & Szelest 1994; Dynarski 1994; Flint, 1996; Christman 2000; Harrast 2004), others have concluded that borrowers from various ethnic groups with similar educational attainments, marital status and family size have similar repayment behaviors. 1.5 Family Background & Income It has generally been found that students from low income families are more likely to default, as are those from families with limited education. (Dynarski 1994; Christman 2000) One study did not find any relationship between family income and education levels and default. (Flint 1996).

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1.6 Academic Preparedness A number of studies have shown that students who have higher achievement prior to entering post-secondary have lower default rates, and alternatively, those with lower achievement have higher default rates. (Dynarski 1994; Christman 2000). Locher and Monge-Marango (2003) found an interesting U-shaped relationship between SAT/ACT test scores and default - with default rates highest for the most able students (quartile 4), the rate for the least able (quartile 1) being quite close to that for quartile 4. Students in the middle quartile 3 had the lowest default rates. 1.7 Borrower Attitude One study of loans to law school students found that default is related to borrower willingness to pay and ability to pay, not to borrower characteristics or school characteristics and practices. (Monteverde 2000)

2. Post-secondary Experience Variables 2.1 Institution Variables Woo’s (1992) research analysis revealed that vocational schools, particularly privately-owned ones, are more likely to have students who default. Dynaski (1994) found that students from proprietary schools and two-year colleges were higher default risks, while Volkwein & Szelest (1995) commented that over half the defaulters in their study were those who attended proprietary schools. Human Resources and Skills Development Canada, in their 1997 evaluation of the Canada Student Loans Program, indicated that borrowers from colleges, especially private ones, are more likely to default than university students. Kapsalis (2006), in his StatsCan analysis of 128,000 Canada Student Loan borrowers who consolidated their loans in 1994/95, found that the average default rate within the first three years after consolidation for students from universities (graduate programs) was 12%, universities (undergraduate programs) 20%, colleges 30% and private institutions 43%. While default data has often been taken as evidence that type of school effects default behavior, much recent commentary suggests there is little evidence school characteristics actually impact default directly. The alternate analysis emphasizes that it is the characteristics of individual borrowers that can be the most effective predictor of defaults - that is, it is a function of the types of students who enroll in programs that relate to defaults, not factors related to the schools themselves. (Volkwein & Szelest 1994, 1995; Volkwein & Others 1995; HRSD 1997; Monteverde 2000).

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2 Major/Field of Study Volkwein & Szelest (1994) as well as Harrast (2004) and Rodgers (2004) found that students in certain majors/programs may have lower default rates than those in other programs. but did appear to be a factor for university undergraduate students. 2. the higher the likelihood of repayment.2. Flint (1996) found that. this has a negative impact on repayment rates.5 Counselling Lein & Others (1993) concluded that counselling has large and beneficial effects. Volkwein & Szelest (1995) report that majoring in a scientific or technological discipline significantly increases the likelihood of repayment.4 Student Employment Volkwein & Szelest (1998). in their analysis of the National Post-secondary Student Aid Study. he found that average default rates in the three years after loan consolidation for Arts students was 28%. Howell & Deike’s (2004) research at Pennsylvania State University suggested that entrance and exit counselling have no effect on loan defaults.3 Duration of Attendance Factors Borrower default rates have been shown to decrease as the length of time in post-secondary education increases. controlling for student background. but that the greater the congruency between a student’s college major and their post-school employment. no apparent differences in repayment were related to whether loan counseling was done before. while the rates for professional program students (Medicine/Dentistry. 2. Harrast 2004). 2. McMillion (2004) reports that when students extend their attendance in an undergraduate program beyond five years. 6 . particularly when it ensures students are aware of their loan obligations. and vice versa. McMillion (2004) points out that this study did not look at the default implications of working a small number of hours versus a large number of hours. during or after enrolment by either the schools or the lenders. For example. school choice. Health Sciences and Law) were in the range of 5% to 8%. (Christman 2000. Flint (1996) concluded there was no relationship between major chosen and default. found that working while in college lowers default 7 ½% for non-white borrowers (with no impact on white borrowers). academic and other characteristics. Data from Kapsalis’ StatsCan research (2006) indicates that field of study wasn’t a significant factor in default rates for college and private institution students. Lochner & Monge-Marango (2003) found that the differences in default behavior and major disappear when debt and earnings are taken into account.

7 . McMillion (2004) concludes that. Post-secondary Success Variables 3.3. have a higher rate of loan defaults. but not for minority students. which indicates that 71% of defaulters withdrew without completing studies. This is borne out by recent statistics from the U.1 Completion Based on a large number of studies that have indicated students who do not complete their post-secondary program. Flint 1996. re-enrol and then drop out again have lower default rates than students who withdraw and don’t return. the general conclusion of most researchers today is that success in post-secondary education plays a larger role in predicting who will default than does either the borrower’s background or the type of institution they attend. 2006). They found that students who are continuously enrolled or who complete their program are far less likely to default than are students who drop out during the same period. 3. and conversely. many have concluded that ‘completion’ (or non-completion) is a key to predicting repayment and default behavior. while some have found that students with failed courses are more likely to default. Rorie & Pierson 2005). Harrast 2004). Rodgers (2004) describes a joint study by the Colorado Student Loan Program and the Colorado Commission on Higher Education that found students who drop out. Christman 2004.S. Volkwein & Others (1995) found GPA to be a strong predictor of default behavior for Caucasian students.3 Continuous Enrolment Podgursky & Others (2002) report on a study following students from 1992 to 1999 to determine who defaults on their loans. (Woo 1992. either through failure or withdrawal. 3. students with low GPA’s have higher default rates. whereas much of the early research on student default looked at the association between borrower or institutional characteristics and default behavior. Volkwein & Others 1995: Rodgers (2004). Based on his comprehensive review of default literature. Direct Loan portfolio. (Volkwein & Szelest 1994. (Hildebrand & Walsh.2 Grade Point Average Many studies have shown that students with higher GPA’s have lower default rates.

while another concluded there was no relationship between amount borrowed and default. 4. 4. widowed and having dependent children have been found to relate to higher default rates. 8 . Post-college Variables 4. (Volkwein & Others 1995). It is suggested this reflects the fact that. for the most part.1 Level of indebtedness Several studies found that students with high indebtedness have lower default rates than students with lower student debts. One study found default rates increase with amount of educational debt (Lochner & Monge-Marango 2003). Kapsalis (2006) concludes that borrowers’ ability to repay their loans depends primarily on their income after leaving school. Mortimer (2006) concludes that student success in the labour market (income and employment) is the primary determinant of loan repayment. students with higher debt have continued longer in school and reached higher levels of educational attainment and thus higher earning power. 4. Based on a review of an extensive body of research literature and his own studies on loan default.000) are related to higher default rates. Kapsalis (2006) reports that high Canada Student Loan debt levels (defined as over $20. (Woo 1992) 4. divorced.5 Loan Repayment Behavior One study has shown that borrowers who have been in deferment or forbearance are less likely to default. 1996). (Woo 1992. (Flint. Monteverde (2000) found that an individual’s credit bureau score (presumably reflecting the borrower’s history of paying off debt) was an effective predictor of the probability of default. Flint (1996) found no relationship between post-college marital status and default.4 Personal and Family Status Variables such as being separated.4. while those who went into delinquency more than once were more likely to default. Flint.2 Unemployment Several studies have identified unemployment as one of the most significant variables associated with loan defaults. 1996 & 2004).3 Income Several studies have found a strong relationship of post-school income to default.

4. employment. student major. and loan program counselling). 2006). Summary of Factors That Play A Role in Government Loan Defaults A relationship can be found between many factors and student loan default/repayment behavior. attendance duration. post-secondary success variables (completion. post-secondary experience variables (characteristics of institution.) While default rates for students who attend private career schools appear to be higher overall than students who attend public institutions. including their policies and processes. post-secondary success variables (specifically program completion and graduation) appear to be seen as key factors in loan repayment behavior. ethnicity. a number of researchers believe that the characteristics of individual borrowers may in fact be more important than characteristics of schools themselves in predicting defaults. as are employment and income after graduation/leaving school. Statistics from the U. Direct Loan portfolio indicated that 56% of defaulters had incorrect telephone numbers on record. making it very difficult to contact them during the 360-day collection effort during delinquency. Lein & Others (1993) found that default is positively associated with lack of awareness of loan deferment provisions. employment during school. may play in impacting loan repayment rates. family background and income. Woo 2002) It has also been suggested (HRSD 1997) that default rates are significantly higher for borrowers dealing with some financial institutions compared with others. age. At the same time. Future directions for research could include an investigation into whether the increasing number and complexity of federal and provincial government student aid programs may in fact be negatively impacting student loan repayment and default behavior. personal and family status. (Hildebrand & Walsh. loan repayment is positively associated with borrowers’ understanding of loan obligations and knowing the rights and responsibilities under loan terms.6 Knowledge of Repayment Obligations & Options Ryan (1993) concluded that for California State University students. There seems to be a lack of research in certain areas.S. 4. income. 9 .7 Loan Servicing Factors Two studies have revealed that students dealing with multiple lenders have higher default rates. continuous enrolment and grade point average). Volkwein & Others (1998) concluded that lacking knowledge of repayment is not a significant factor in default. and post-college variables (debt level. (Flint 1996/1997. ones that relate to student characteristics (gender. as well as loan servicing factors. loan repayment behavior and knowledge. particularly the role that the government loan programs themselves. academic preparedness and borrower attitude).

debt management and default prevention activities are categorized in four stages: Stage 1: Application and Loan Origination. which has sections relating to pre-college.gov/qamodule/DefaultManagement/DefaultManagement. Department of Education. while students are attending the college.html) 10 .ed.S.ed. referring to other practices and tools that can be used to supplement institutional approaches. School-based Default Prevention Approaches It is clear that there are many points where post-secondary institutions can interact with government loan borrowers in such a way that risk of defaults is decreased.usafunds. fiscal and political issue in the U.ifap. during college orientation of students and parents. In-School Period. Stage 2. and (3) after students leave school.org/financial_aid/debt_management/best_practices/keys_to _success/develop_plan/sample_plan/index. it appears reasonable to learn from the American experience.ed. Both in their Default Prevention & Management Plan and in their Tools for Schools: Default Management (see http://www. Stage 3: Grace Period.S. Federal Student Aid group’s Sample Default Prevention and Management Plan (http://.S. in-school and grace period & repayment.gov/dpcletters/GEN0514. and at withdrawal or graduation. The U. plus in-school and graduation/withdrawal efforts. The manual can be located at http://usafunds/financial_aid/debt_management/best_practices/index. for considerably longer than it has in Canada. It also refers to strategies that occur pre-college. enrolment and application efforts.ifap. Stage 4: Repayment Period. It can be located at http://www.html) classifies activities into: (1) early stages of enrolment. Given concern for government student loan defaults has been a significant educational. The following discussion focuses on ‘schoolbased’ government student loan default prevention strategies. practices and tools used either directly or indirectly to improve the student loan repayment rates at the post-secondary institutional level in the United States. Context Introduction This chapter describes strategies.html USA Funds also provides a sample default management plan for post-secondary institutions.htm In Ensuring Student Loan Repayment: A National Handbook of Best Practices (http://ifap. when students are applying for their government loans.gov/eannouncements/attachments/0118nhbook1web.pdf) default prevention strategies are broken down into pre-college.School-based Default Prevention Strategies: the U. (2) late stages of enrolment. In USA Funds’ Debt-Management Best Practices Manual.

org/subhomes/financialaidnight/faidnight. high schools and post-secondary 11 . A similar presentation script and/or slide show could be developed for the Canadian environment.com has sections to help students and parents plan (and understand that student loans must be repaid). The Fin Aid website also includes a very helpful “Student’s Financial Aid Checklist” which has a check-off list for important ‘to do’s’ starting with the junior year of high school and continuing until the student completes their post-secondary education. This chapter categorizes school-based default prevention approaches.com/students/checklist. and financial literacy information and services for students. public service project of the financial aid industry in the United States.S. Default-Prevention Approaches: Before Post-secondary The focus of this stage is to help students and their families learn about the financial realities of post-secondary and the opportunities to access various types of repayable and non-repayment assistance.the U.phtml ) It would be interesting to develop a Canadian version of this checklist. Resource materials available on the NASFAA website include: Guide to Planning and Conducting a Financial Aid Night. one that includes specific reference to the existence of repayable student loans and non-repayable forms of assistance. Department of Education refers to Late Stage Delinquency Assistance (LSDA) just prior to a loan being defaulted. The award-winning FinAid website www. The National Association of Student Financial Aid Administrators (NASFAA) has developed materials for financial aid administrators and high school counsellors to put on a ‘Financial Aid Night’. (www. It brings together the expertise of the industry to provide free college. The State of Nebraska’s Educational Planning Centre has arranged for such information to be included in packets going home with parents of newborns from the hospital. including the nature and implications of student loans. and Financing Education Beyond Highschool.nasfaaa. a financial aid presentation script and PowerPoint slide show providing basic information students and parents need to know when applying for financial aid.finaid. The website can be located at http://www. financial aid. Some have recognized the importance of ensuring parents are informed early of the need to start thinking about financially planning for post-secondary.finaid. (3) in-school and late stages of enrolment. practices and strategies into: (1) before post-secondary. with expanded reference to the student loan repayment requirement and the implications for student loan borrowers. and 4) after students leave school. with a section on parental information aimed at parents of newborns.asp Mapping Your Future is a national collaborative. families. (2) early stages of enrolment. career.

from the summer before senior high school year to the start of classes in September. an early-awareness program for middle-school students and their families.com/student/pay/index. The sections on student loans could be expanded to emphasize the repayment obligation more fully. Default Prevention Approaches: Early Stages of Enrolment The U. information on applying for a government loan. Information on Unlock Your Future can be found at http://www. Mapping Your Future announced a new on-line financial literacy educational tool Show Me the Future . parents.collegeboard. late stages of enrolment and after students leave school.org/mhsc/) can be used by both middle and high school counsellors as well as financial aid counsellors from postsecondary institutions involved in early awareness programs intended to provide information about repayable and non-repayable student aid. as well as post-secondary students and financial aid administrators.html It includes a Financial Aid EasyPlanner.S. covering activities. what should be done to plan financially and apply for government assistance. The 30-minute Family Track is a presentation for family members that complements the student presentation and encourages adults to play an active role in their child’s future. and college financing calculators. the importance of financial planning. It covers the value of higher education for their children. and counsellors. the need to set career goals and the value of higher education. a Scholarship Search database.institutions.cfm USA Funds introduced Unlock your Future in 2003.htm The College Board has a ‘Pay for College’s section of their website: http://www. The game can be found at: http://showmethefuture. budgeting. Department of Education has published a September 2005 update of its Sample Default Prevention and Management Plan. The game is designed to assist 12 to 20 year olds prepare for their futures by helping players understand: the cost of living. Downloadable PowerPoint presentations for both middle and high school students and families (http://mapping-your-future. 2006.an interactive financial literacy and life skills game. The early awareness section of the Mapping Your Future website includes sections aimed as middle and high school students. A Financial Aid Calendar outlines.org/game/index. first issued in 2001 for schools that have students obtaining federal student loans. It includes sections on early stages of enrolment.org/financial_aid/resources/unlock_the_future. techniques and tools to promote student and school 12 . step-by-step. It includes a 45-minute Student Track that informs students of their career and education options and encourages them to plan for their future. 21st century career options and financial aid eligibility. On March 31. the difference between wants and needs.usafunds.

regardless of educational outcome or subsequent employability. or electronically. Schools are also encouraged to include financial literacy information such as the income potential of occupations relevant to their course of study and tools to manage debt. Details of OLSC for financial aid administrators can be found at: http://www. and show borrowers sample monthly repayment amounts based on their program of study.htm Other organizations have developed on-line counselling that meets federal requirements.S. describe the consequences of default.ed. individually or in a group with other borrowers.success and reduce student loan defaults in the Federal Family Education Loan (FFEL) and national Direct Loan programs. Federal regulations require that schools provide entrance counselling to first time FFEL and Direct Loan borrowers. Schools are encouraged to enhance their entrance counselling to include: • • • • • • • • a review of terms and conditions of the loans and repayment options.ifap.html U.org/ECounsel/Counseling/Index. emphasize the importance of repaying loans. reinforcement of the importance of communicating change of status to the lender. managing of expenses (budgeting). This is a free public service and there are no requirements to use a specific guaranty agency or lender to participate. The counselling must explain how promissory notes work.mapping-your-future. forbearance and cancellation options. a reminder about the requirement for exit counselling.do?clientid=PA&loca le=en 13 . a review of deferments. a division of the Pennsylvania Higher Education Assistance Agency. The Mapping Your Future website includes on-line student loan counselling (OLSC) modules that meet the U.S. One example is that made available through the American Education Services (AES). (2005-06 Federal Student Assistance Handbook).S. It can be found at (http://. stress that repayment is required.org/services/oslcpsindex. Department of Education’s Ensuring Student Loan Repayment: A National Handbook of Best Practices (2001) recommends that parents be included in entrance counselling if borrowers are dependent students. The U.gov/dpcletters/GEN0514. a reminder of refund and other policies affecting withdrawals. Department of Education’s federal loan counselling requirements and help students understand education loan obligations. a reinforcement of the importance of keeping loan records. a review of borrower’s rights and responsibilities. It can be accessed at: https://host208.aessuccess.

youcandealwithit.org/financial_aid/debt_management/usa_funds_life_skills/b est_practices. designed to help college students. (2) avoid consequences of default. The component for Financial Aid Advisors includes an entertaining. plus resources related to debt management. repaying their student loans. (3) be in control of your finances.html The Mapping Your Future (MYF) website includes Financial Fitness Tools: Ten Steps to Financial Fitness and a Debt/Salary Wizard. It can be found at http://www. The site includes sections on purchasing a first car. This section can be found at: http://www. (4) balance your cheque book. It can be established as a computer workstation for students to use or promoted for at-home use. living on a budget.AES has also developed the www.com website.org/features/dmtensteps. downloadable video/with audio Common Cents Tour. The Common Cents Tour is available free of charge for use in Financial Aid offices and was designed for financial aid administrators to incorporate into the entrance counselling program. a program that helps first year students become more financially responsible. (8) know your credit report. The Financial Fitness Tools are located at: http://www. a financial literacy program designed to equip post-secondary institutions to teach their students to manage their time and money wisely while they are on campus and after graduation. saving for the future.html USA Funds has developed Life Skills. get advice on the wise use of credit cards. (9) clean up credit. which is an interactive calculator to help students and parents determine (a) how much salary is needed to make the 14 . balancing a cheque book.com/faas/default. While other schools cannot order and use the Life Skills materials themselves. the USA Funds website includes a helpful section that describes how schools using the Life Skills materials have integrated it into their financial literacy and/or student success programs. Use of the Life Skills program is limited to institutions that use USA Funds as their primary guarantor or schools in states where USA Funds is the designated guarantor.htm MYF also includes a Debt/Salary Wizard. as well as recent and soon-to-be-graduates. Mapping Your Future also provides interactive calculators to help students with budgeting. Executive Director of the Jump$tart Coalition for Financial Literacy and author of Please Send Money: A Financial Survival Guide for Young Adults on Their Own. The Steps to Financial Fitness is intended to educate high school and college students about personal finance. (10) surf the web for more info. and access information on credit reports and investment options. (6) pay yourself and invest. (7) use credit wisely.mapping-your-future. Students can determine if they are financially fit. The worksheets and exercises were developed by Dara Duguay. The ten steps include: (1) understand the roles of student loan players.usafunds. learn about the consequences of default and how to avoid defaulting on their student loans and other debts.YouCanDealWithIt. understand the importance of financial literacy. (5) establish a budget. savings and loan consolidation.

15 . One example given is the Profile of a Student Loan Defaulter at the University of Illinois. or both. The wizard can be found at: http://www. building first year experience sessions. borrowers who do not meet standards of academic progress. programs or courses around one of the financial literacy programs available to all institutions such as Mapping Your Future’s Financial Fitness Tools or the AES Common Cents Tour. Chicago. including information on alternatives to borrowing. The Handbook suggests institutional research departments at post-secondary institutions do research to develop a ‘profile’ of defaulters at their schools.mapping-your-future. • Default Prevention Approaches: In-school and Late Stages of Enrolment In their Sample Default Prevention and Debt Management Plan (revised version September 2005). Department of Education emphasizes the importance of early identification and counselling of students at risk of defaulting. when student-based default information is available to the institution. appropriate borrowing. The Department’s Ensuring Student Loan Repayment: National Handbook of Best Practices (2001) indicates that those who withdraw within the first year of enrolment are particularly at risk.000 the borrower faced poor job prospects the borrower had other financial burdens besides education debt the borrower did not perform well academically the borrower came from a low income household the borrower married another student with loan debt the borrower was a single parent. and (b) how much can be borrowed. with this specific profile: • • • • • • • • • the borrower failed to graduate the borrower failed to provide a current address or phone number the borrower owes less than $2. the U.S. the responsibilities related to borrowing and the consequences of default.payments on current and future student loan debt. based on future expected earnings. This includes borrowers who withdraw prematurely from their educational programs.org/apps/debtwizard/ Among the additional strategies that can be used early in the enrolment period include: • orientation sessions offered to students and parents by the postsecondary financial aid office personnel to provide information on financing education and debt-management.

They suggest that institutions should be sure that they collect sufficient contact information while the student is enrolled. Among the strategies proposed to deal with high-risk populations . investing and budgeting. guest speakers. USA Funds suggests offering workshops several times each term on topics such as reducing living expenses. ask them if they’re returning and remind them of loan repayment obligations • In their Sample Default Management Plan. send letters to borrowers who don’t use early registration for the next term. The Ensuring Student Loan Repayment Handbook of Best Practices outlines five ways institutions can more effectively track dropouts: • • • • establish record-keeping processes and systems to alert the financial aid office when a loan recipient leaves school. representatives from the U.In two presentations on Reducing Delinquency and Default. See 16 . giveaways and food. issues to consider when borrowing. searching for outside scholarships. They also suggest designing a communication stream for students that includes: (1) a debt-management newsletter distributed monthly via campus mail and e-mail to provide information on student loan application issues. saving. A further suggestion is that financial and academic counselling be integrated. and money-saving tips.S. transfer procedures. check course drop procedures to ensure they’re designed to identify borrowers who drop all of their courses and set up a process to contact those students immediately and inform them they need to come in for academic and financial counselling. credit.monitor students’ ‘satisfactory academic progress’ and counsel potential ‘early leavers’. and (3) sponsoring a debt-management day in the middle of term(s) involving informational postings in student food service facilities. so that they can immediately contact dropouts. Schmidt & LeBorys and Rorie & Pierson: NASFAA Conference sessions. (2) an FYI e-mail campaign consisting of brief but effective information e-mails to students on debt management. and borrower benefits . Department of Education’s Federal Student Assistance Default Prevention and Management division proposed that institutions develop strategies for financial aid offices to quickly find out about students who leave early. (Pierson. explaining that this will help the financial aid office assist students with their loans. an information table.information that students can put into action immediately. loan consolidation. credit cards. November 2004 & July 2005) The Sample Default Prevention and Debt Management Plan suggests that counselling should focus on the causes of withdrawal or unsatisfactory academic progress and solutions to resolve these matters. repayment. ask instructors to alert the registrar’s office when students in their classes stop showing up. communicate with enrolled borrowers frequently.

exit counselling is offered on the web by guarantors. and saving money. It can be downloaded from http://www. an explanation of how to complete deferment forms and prepare correspondence to the lender.com/faas/default. lenders. the loan grace period. the obligation to repay the loan even if the borrower drops out. and by the Direct Loan Program. review of repayment options. consequences of default and tax deductions. doesn’t get a job or is otherwise dissatisfied with the quality of the school’s educational programs and services. determining financial priorities.html 17 . notification of the availability of loan information on the National Student Loan Data System and the availability of the FSA Ombudsman’s office.S. The required elements of exit counselling.http://www. review of forbearance. or through audio-visual materials. It can be established as a computer workstation for students to use or promoted for athome use. This video (with audio) presentation is available free of charge for use in financial aid offices and compliments the U. creating a budget.org/financial_aid/debt_management/best_practices/keys_to _success/develop_plan/sample_plan/index. Department of Education-required exit counselling program. deferment and cancellation options. and stressing that a borrower must make payments on his or her loans even if they don’t receive a payment booklet or billing notice. • • • • • • It is recommended that exit counselling also include providing the student with the current name and address of the borrower’s lender. discussion of debt management strategies. the importance of the repayment obligation. Money Matters is a program to help students and recent grads become more financially responsible. The component on understanding student loans includes information on borrowers’ rights and responsibilities. Department of Education requires that Perkins Loan and Direct Loan borrowers have exit counselling before they graduate or when they drop below a 50% course load. emphasizing that borrowers should always keep copies of all correspondence from and to them about their loans.html The U. It includes a student loan calculator and grace period calculator.S.usafunds. as outlined in the 2005-06 Federal Student Assistance Handbook are: • review of information from entrance counselling. As is the case with entrance counselling. It includes sections on understanding student loans. The counselling can be provided to students individually or as a member of a group. particularly the consequences of default.youcandealwithit. collection and updating of personal and contact information. Developed by AES. managing debt. providing an average anticipated monthly repayment amount. the use of the promissory note. loan repayment.

They should be informed that they can defer their loans as long as they are enrolled. all with eye-catching photos.fp. It suggests that the best way to help dropouts become successful repayers is to encourage them to return to school to complete their programs by contacting them as soon as possible and finding out why they left school and what it would take to get them to re-enroll. Early Stage Delinquency Assistance (ESDA) begins at the time of separation or 18 .gov/fp/attachments/activities_whatsnew/DA1202. to ensure they know about consolidation and other repayment options and the deadline for starting repayment. Indianapolis.ppt ) Default Prevention Approaches: After Students Leave School The U. For example. and to reduce the total interest to be paid. (AES Default Aversion Information Sharing Session. like paying back your student loan before interest kicks in”. the spring and fall 2002 posters included a series “If time is money. “Do something useful during your grace period. December 2002 found at http://www. encourage students to make payments during the grace period to help them become aware of the existence of loan payments in their budgets as they leave school and find jobs. let students retain their school e-mail accounts for at least six months after they leave school to provide a constant point of contact and a vehicle for the school to communicate with borrowers. “Bad credit is like a bad nickname.AES also developed a series of entertaining posters for posting on campus related to various aspects of student loans and finances.S. Department of Education’s Ensuring Student Loan Repayment: A National Handbook of Best Practices (2005) outlines a number of strategies for schools to follow once students have graduated/withdrawn from full-time studies. • • • The Department of Education’s Sample Default and Management Plan (2005) describes two stages in providing assistance to delinquent borrowers. and “Default on your student loan and watch good credit go bad”. It is recommended that schools: • contact borrowers immediately after they enter the grace period and several times during the grace period. The importance of the school making early contact with borrowers during the grace period is mentioned. it will stick with you for years”. how come I have so much of one and not the other?”. Since technical defaults can occur when students transfer to another institution and don’t notify the first school. use the grace period to set up an electronic payment agreement with the borrower. it is suggested that schools may want to track transfer students.ed.

those whose attrition was unplanned and permanent. mailing hand-written notes. with the overall average for various types of institutions being 36%. (Rorie and Pierson. inadequacy of financial resources to continue study. the decision (arrived at sometime after the commencement of study) to transfer to another institution: 19 . It mainly involves the school making a series of phone calls.early in the grace period. In the case of borrowers who are at least 60 days delinquent. Research has revealed that the average ‘percent rescued’ for LSDA programs ranges from 25% to 70%. using contact information from several sources. guarantors and schools to assist borrowers who are at high risk of default to prepare for entry into loan repayment. July 2005). in some cases several a month. the student being required to withdraw. sending out information on repayment options. to inform their previous students who have become delinquent borrowers that there are options and help available. “Reducing Delinquency & Default: How Schools Can Help” NASFAA Conference presentation. Reasons given by true leavers for departing university: • • • poor academic performance. connecting the student with the Loan Service Center in a three-way call. between 30 and 50 will leave prior to degree completion. and is a highly-focused effort by lenders. University Presidents’ Council of British Columbia. remembering the goal is assistance. 59% of the leavers were ‘true leavers’ . calling at different times of the day. Of the early leavers. Inter-relationship of Student Retention and Loan Repayment British Columbia has some significant research experience with students who are early leavers at provincial universities and colleges. not collection. Late Stage Delinquency Assistance (LSDA) includes a number of techniques aimed at rescuing severely delinquent borrowers. deferments and forbearance. including. schools are advised to refer their former students to the default aversion assistance offered by guarantors and direct loan servicers. This presentation includes a series of LSDA ‘tips for success’ for schools which include: • • • • • • using a light touch. The 2000 BC University Early Leavers Survey (Conway. It is felt that students respond well to schools. but not limited to. 2001) reported that of every 100 students who start undergraduate studies. over half attend another educational institution within 24 months of their departure.

C. the search for. Given the research indicating that completion of studies is a major factor in student loan defaults. or commencement of. resident assistants) newspaper articles in school or community newspapers flyers.• • • changes in personal or life circumstances.Solving the Retention Puzzle: The Link Between Retention and Financial Literacy. The Student Satisfaction Inventory (SSI). (4) social. in many cases. employment. outlined ways to build financial 20 . Tally Hart. and (5) institutional. on buses and bulletin boards One of the public universities using the USA Funds Life Skills program as part of their financial literacy initiatives is Ohio State University. (Coleman & Miller. the academic program the student was interested in. 23% of short stay students said they left early because they had completed their program. allows institutions to capture both a satisfaction score and an importance score so they can identify the strengths and challenges of their institution and compare results to national scores. 2005). university colleges and institutes after completing a relatively small number of courses . When asked for their main reason for leaving. College and Institute Short Stay Pilot Survey collected data on the outcomes of former students who left public colleges. dissatisfaction with. including illness and family obligations. USA Funds sponsored a symposium in February 2005 .between 9 and 13 credits. 2005). The B. (3) life issues. a tool for campus assessment of student experience that includes a section on financial literacy. It recommends using student peer counsellors in a campus financial literacy program that includes: • • • • • presentations in courses: tables or booths at campus fairs and new student orientations addressing staff meetings (such as housing coordinators. December 1. or unavailability of. to transfer to another program or institution. Ohio State’s Director of Student Financial Aid. 46% of the early leavers took some further studies. In a December 2005 web conference Using Financial Literacy Programs as a Student Retention Tool (Academic Impressions Web Conference. and 11% said their main reason for leaving had to do with finances and affordability. there has been growing interest in the relationship of student retention. or completed courses they wanted or needed. 16% said they left for employment. (2) personal. The symposium summary categorized risk factors associated with students dropping out of college before completing their program into five categories: (1) academic. loan repayment and financial literacy.

This analysis supports the key role of financial aid administrators in the retention of students. adding to student loan entrance counselling). Seidman points out the central role of the financial aid office in student retention. compared to other parts of the institution. References to Gardner’s research can be found at http://www.g. and possibility the first in many instances. telephone and/or in-person. it may have the most contact with the student during his/her full post-secondary career.cscsr. including as part of comprehensive first year experience classes.literacy into existing campus offerings (e. 21 .environment’ fit and the impact on satisfaction (1984). Executive Director of the Center. contact with the student in writing. through the web. including Astin’s belief in ‘involvement’ as the cornerstone of retention (1985) and Witt and Handal’s ‘person . it does many mailings to students. In a slide show included on the Center’s website.sc.edu/fye/ . He relates this to factors such as: • • • • the financial aid office is the second. proposes a retention formula for student success: Retention = Early Identification + (early & intensive & continuous) intervention Seidman bases his theory on the work of other key contributors to the student retention field. it assists students’ ability to attend. combining with freshman survey classes. particularly the identification of financial literary as one of seven competencies for freshman success and the research indicating that the third week of a student’s first term is a crucial time to address financial literacy issues with students. She bases much of her approach on John Gardner’s work on the first year experience.org) Alan Seidman. A very helpful resource on student retention is the website of the Center for the Study of College Student Retention (www.

both at the main Burnaby campus and when such sessions are offered at external locations.C.g. BCIT bursaries. Program Advisors). It also includes downloadable forms for students to apply for BCIT assistance.) Presents group information sessions to give an overview on repayable and non-repayable government and institutional student assistance to BCIT staff (e. both in hard copy and as a downloadable PDF file on the department website. Financial Aid Office • As part of an outreach program to provide prospective students information on student assistance opportunities. Post-secondary Institutions British Columbia Institute of Technology 1. • • • • • 22 . entrance awards. Trades Discovery classes and selected class intakes at Aviation and Marine campuses. The financial aid and awards department website presents information on full-time and part-time government and institutional assistance (both repayable and non-repayable) and includes information on student loan repayment. and includes a budget worksheet. as well as a link to CanLearn’s Student Financial Planner and the University College of the Fraser Valley’s ‘Comprehensive Financial Planner’. Maintains and keeps up-to-date a very extensive series of bulletin boards on government loan programs and other types of government assistance. that includes information on the importance of a financial plan. Presents special information sessions on student assistance options to targeted groups (e. scholarship/award search websites. full-time and part-time government and institutional assistance (both repayable and nonrepayable).Improving Government Loan Repayments: Samples from B.C. and at ‘Big Info Sessions’. Student Loan Service Bureau. has a financial aid advisor and information station at the bi-annual BCIT Open House. and transfer awards.g. It includes contact information on the National Student Loan Service Centre and the B. Publishes a ‘Student Financial Aid & Awards’ brochure.

targeted to announce important developments such as award and bursary deadlines. time management and accessing support and assistance at BCIT. Disability Resource Centre. with topics including factors contributing to student success. Communicates with students through student intranet e-mail messages. Offers both BCIT emergency loans and emergency bursaries to assist students survive financial crises.• Two student use computers are located in the financial aid and awards reception/resource area to allow access to the web for financial assistance information. Has developed system reports to identify student withdrawals on a timely basis. Has used the back of washroom doors to communicate award deadlines to a captive audience. Aboriginal Services and Student Housing) work in a coordinated manner. Victoria 23 . with front-line team staff and/or financial aid advisors following up in selected cases to alert students to the implications of dropping their course load. study skills. time management and how to access Institute resources. using inter-departmental referrals when appropriate to assist students deal with problems impacting their studies. Topics include learning styles. to apply for government assistance on-line and to access forms for applying for institutional assistance. The BCIT ‘Learning for Success’ program offers a student success course that is part of the Engineering Technology Entry programs. The Counselling & Student Development department offers ‘BCIT Preparation and Early Orientation’ courses. The ‘Student Financial Aid & Awards’ brochure is distributed to participants. • • • Camosun College. Student Services departments set up information tables at a ‘Student Services Day’ each year in the fall. study skills. • • • • 2. Apprentice Services. Other student support services • Student Services departments (including Student Financial Aid & Awards. Counselling & Student Development. that in some cases might otherwise mean they may have to withdraw from courses or their program.

students who tell an academic advisor they are withdrawing for financial reasons are referred to Financial Aid & Awards. • 24 . North Vancouver 1. Financial Aid Office • Emergency Bursaries are used to retain students in financial crisis. Financial Aid Office • Proposing to develop a pop-up box such that when a student goes to withdraw on-line. including students at risk of withdrawing. the pop-up advises them to contact the financial aid office to find out about the implications of their withdrawal. As a result of an effective system of inter-departmental referrals. 2. if appropriate. A handbook is provided to new students ‘At Your Service: A Guide to Student Services for Students’. Faculty refer students to student services for a variety of reasons. discussions are also underway to require all college students to do one. a significant number of students have been prevented from dropping out. which gives a brief description of each service. a counselor. identifying those BCSAP recipients who drop below a 60% course load (40% for students with documented permanent disabilities). with planned follow-up with students to inform them of the loss of their funding eligibility. Other student support services • Students in Associate Degree and Business Diploma programs are required to complete Personal Learning Plans (PLP’s) and meet with academic advisors to clarify their objectives. contact information and webpage address. with the hope of some reregistering to maintain eligibility. to the Disability Resource Centre. Students reporting to Financial Aid & Awards wanting to withdraw from a class or program are frequently referred to an academic advisor. hours of operation. Considering the establishment of a Banner report generated on a daily basis. or. The focus of the college’s student service departments is to educate students and assist them in acquiring the skills needed to be more self-reliant.1. Similarly. • • Capilano College. While it is planned that all university transfer students will need PLP’s.

25 . spring and summer terms. As part of the financial assistance advising process. tuition refunds. Such students are advised of their loan repayment obligations. When students exit early or complete prior to the end of their funded term. Cranbrook 1. Spring financial assistance workshops are delivered to regional high schools. College of the Rockies. Financial Aid Office • While college students in general are not allowed to withdraw completely without first speaking to a Financial Assistance Advisor. • • • • • 2. Students who appear on the list but are not attending are contacted and advised of the impact their non-attendance will have on their program success and eligibility for financial assistance. “Debt Free Graduate” books are distributed at Orientation Day Error/omission class lists are distributed after the term’s stable enrolment date to ensure all class lists are accurate.• As a way to limit overawards (and hence prevent potential defaults in students’ graduating year) starting with the 2006/07 year. the FAO is notified to ensure any tuition refunds are distributed appropriately to CSL/BCSL service providers. BCSAP recipients require the approval of the FAO to either withdraw from courses or withdraw completely. and admission requirements to ensure only qualified students/those sufficiently prepared are admitted. will not allow Business and University Transfer students to apply for BCSAP in an educational period that includes the fall. students are able to access information and assistance regarding student loan repayment. the successful completion/withdrawal policy and debt management tools. Other student support services • Among college policies that have a positive effect on retention/completion rates of student loan recipients are: vocational student attendance policies. including federal and provincial debt management tools. CSL/BCSL overawards.

has developed a brochure ‘How to pay for college and not break the bank’ and a new entrance scholarship application. monitor their own progress and allow for intervention by student services if they stray from their education plan. awards. A financial aid website with information on program costs. (b) confirmation of enrolment forms need to keep loans in good standing. emergency loans). a course designed to increase students’ academic success and enhance both the students’ college experience and future employability. • • • • 26 . Consists of five modules. thinking skills. In co-operation with the college’s Communications and Marketing Office. basic computer use. bursaries and links to other resources. fee deferrals. In the summer 2006.• Future initiative: Essential Skills for College Success (ESCS 100). (c) loan repayment when they leave full-time study. Historically offered in the summer and less frequently throughout the year. New Westminster 1. Participates in Open House and Student Orientations. research skills and keyboarding skills. (d) the effect of default on credit rating. awards. bursaries. (e) programs available to assist them if they run into financial difficulty while in repayment. financial aid programs. Two student-use computers in the financial aid office for students to apply on-line for their student loan and to access web resources. • Douglas College. including CanLearn’s Loan Repayment Calculator. there are plans to add an electronic award application. scholarships. to help students with the application process and to provide information on (a) institutional funding (scholarships. Financial Aid Office • Continue to offer financial aid sessions to assist students understand the loan program. but attendance has dropped off. writing skills. which encourages them to ask questions if they don’t understand something. Future initiative: Implementation of a degree audit program to allow students to track their education plan. and (f) other student services available at the College.

to help the student stay in school. if it is noticed that a student is not enrolled full-time. or to help them plan for a return to school if they need to take time out. All participants receive a folder with federal and provincial brochures including ‘Canada Student Loans for Full-time Students .ca).ca. Introduction to College Studies (3 credits) is designed to help students develop the skills. Student Success STSU 1100. Some of the general bursary funds are used to help students in crisis with unexpected expenses. A sample loan amortization table is included that illustrates the cost of borrowing student loans depending on the amount borrowed. as well as telephone and in-person enquiries. bulletins through mydouglas. in which students ask questions about student loans.canlearn. Gift certificates to Safeway are used in emergencies if a student is clearly out of money for food or transportation. interest rate and amortization.ca for financial planning to calculate different scenarios for loan repayment. are given a free copy of ‘The Debt Free Graduate’ and encouraged to think about alternative resources. (see below).douglas. Free copies of the “Debt-free Graduate” are available at the financial aid office and through events such as orientation. • • • • • 2. they are contacted to remind them of the minimum course load required and to inform them of options such as part-time and upgrading funding. for students not confirmed through the automated ECE process.• Communicates with students through e-mail (financialaid@douglas. Students are referred by the financial aid office to other student support services as needed.bc. When confirming enrolment for student loans. The financial aid office offers a two-hour interactive presentation ‘Financing a College Education’. Students are encouraged to use www. knowledge and habits necessary to make a successful transition to post- • • 27 .bc. Other student support services • An on-line student orientation was added to the college website in the summer 2004: http://www. Takes part in Student Success 1100 classes.Investing in Your Future’.ca/new-students/studentorientation/ An in-person orientation was re-introduced in the summer 2005.bc.

Vancouver 1. disability assistance. and transferring to other institutions. • • • Emily Carr Institute. A Student Services Open House is held every fall semester to introduce students to services available at the college. which in turn results in a referral to the Financial Awards Office if the student reveals they are on student assistance or in financial difficulty. library research. will facilitate the transition of new students to the college and their retention into second year and beyond. An Office of New Students. In the case of students who receive several warning slips for non-attendance.. with the result that some students return to the 60% level. personal and career planning. writing a college-level research paper. Other student support services • Faculty members issue a warning slip if a student appears to be heading towards a failing grade (for non-attendance or other reasons). critical thinking. writing centre assistance etc. • STSU 1100 will be offered to high school students in 2006/07 on a co-credit basis (students will get both high school and college credit) to demystify the college and help students get the skills they will need in post-secondary education. which usually means they are referred for academic counselling. Financial Aid Office • Students on assistance that withdraw from the Institute are required to see the Financial Awards Office before the Registrar’s Office will remove them from classes. • 2. approved for September 2006. Such students are coached through various repayment requirements and options.secondary education. A new English requirement was introduced in the fall 2004 to ensure all students have the skills needed to be successful in their courses. The students are contacted and advised of the loan implications of a reduced course load. A bi-weekly report is produced identifying students who have dropped below a 60% course load. It includes components on study skills. the Records Office passes the information on to the Financial Awards Office so that student loan recipients can 28 .

As indicated in the College and Institute Student Outcomes Survey. Students who are identified by faculty for non-attendance or potential failing grades are contacted by the financial aid office to discuss possible solutions. Other student support services • Rigorous admission requirements.. Institute of Indigenous Government. • • Justice Institute of B.C. Burnaby 1. Students who want to withdraw from their program must do so with the financial aid office. Financial Aid Office • Since all BCSAP-funded students must study at the 100% course load level. Financial Aid Office • Identifies students who drop below a full course load and discuss the implications of dropping below full-time before they complete the paperwork. and to remind them of repayment obligations and options.jibc. allow ‘at risk’ students to be easily identified and monitored. plus the small class sizes and low instructor/student ratios.bc. which should result in a direct correlation to the graduates’ ability to repay their student loans.be contacted by phone to remind them of the requirement to attend classes for continued student loan eligibility. A new bursary program has been introduced that provides additional non-loan options for students. • • 29 . Institute graduates show strong employment and earning outcomes. New Westminster 2. it is easy to identify those who drop below 60% students are either in the program or not.ca/studentservices/bursaries/bursaries. See (http://www.htm) • 3. Introduction of eight remedial/reading and review days adjacent to critical exam points in a program to reduce the withdrawal rate.

which obligates the college to offer remedial assistance where necessary. 30 . Nanaimo 1. Many departments follow up on students who do not attend. in the first semester of absence. Such students are contacted by phone or e-mail to discuss the implications. • Malaspina University College. use of tutors.g. The timeline for provision of information on the college offerings and timetables has been moved up. Financial Aid Office • Reports are run regularly that identify students who have dropped below 60%. Implications of dropping below a 60% course load are discussed. Financial Aid Office • Interviews students who are thinking of withdrawing from classes to encourage them not to withdraw. • 2. Plans to introduce Financial Literacy workshops. Vancouver 1. The student can thus return to studies after only one semester out. meeting with instructors. and appropriate remedial measures are identified (e. to allow students to plan their studies and timetables early and thereby commit to a full program of study. a new success program has been implemented that allows a student. to determine how they might be assisted to complete their program. Other student support services • • • The Counselling Department offers success workshops that include topics such as study skills and time management. While previous policy required students placed on Academic Suspension (after a semester on Academic Probation) to sit out a full year before returning to studies at the college. signed by both parties. The student and the counsellor develop a plan for success.Langara College. to meet with a counsellor and have an assessment of needs for retention. referral to the Writing Centre).

to be sent at the end of the student’s last funded semester or when they withdraw. Co-ordinates student supports within the institution. Takes part in first year student orientation (see below). maintaining the minimum course load. Two ‘plain language’ brochures are planned: (a) the first is to be sent to the student after they receive their loan. Kelowna 1.North Island College. plus contact information for the college’s FAO’s and the Ministry of Advanced Education contacts. The Financial Aid Office talks to all students that withdraw and advises them of their responsibilities and options. • • 2. including copies of the ‘Debt free Graduate’ and the recent version of the CanLearn booklet. Financial Aid Office • Attends numerous recruitment sessions (info nights) throughout the year and dispenses financial aid information. will include information on a student’s responsibilities. Courtenay/Comox 1. and (b) the second. asking them if they have a student loan. Okanagan College. will advise the student of consolidation and options available if they can’t repay.g. It is planned to have e-mails sent to such students and to have an exit survey for students dropping on-line. Emergency funding (loans and bursaries) is provided to students who have a financial roadblock that may necessitate withdrawal if not dealt with. referring them to the Financial Aid Office. Other student support services • Counsellors and educational advisors try to direct ‘at risk’ students to the Financial Aid office. e. Financial Aid Office • Reports are generated bi-weekly to identify students who have dropped below 60%. if a student needs major motor vehicle repairs because they travel to school • • • 31 . and if so.

First year student orientation includes student success initiatives. • • 2. • • Encourages students to use the CanLearn website for financial planning and to calculate loan repayment scenarios. • • • 32 . The Deans then speak to the students. the Financial Aid office might link them up with the College’s Auto Service department and give them an emergency bursary. Helps students navigate debt management tools or repayment processes when they receive notice of student loan consolidation and don’t know what the document means or can’t start paying and what to know what their options are.C. and debt management tools. Student Assistance. plus information on B.daily from Penticton to Kelowna for classes. and includes presentations by all student support providers on campus to let students know where they can get help if they need it. The Registrar notifies the Deans of Faculties prior to de-registration of students for non-payment of fees. Math and Science on a drop-in basis. Helps students to reinstate previously defaulted loans to put them back in good standing so they can access debt management tools and additional funding in order to complete their studies. how to go about repaying their student loans. Provides one-on-one interviews at a student’s request (usually when they are about to graduate). Teaching Assistants run Accounting Study Halls for domestic and international students. encourages students to engage with each other and their professors to build a sense of community. to discuss their accumulated debt load. Learning Centres are located at all campuses where students are provided with assistance in English. sometimes uncover underlying personal or financial reasons for not paying tuition and then refer them to the student support providers at the institution. Other student support services • ‘College 101’. a new 1 ½ to 2-hour evening information session for parents and students (of all ages). with the Auto Service department providing free labour. scholarships. includes an overview of admission requirements and processes. bursaries and how to navigate the financial aid website to search for awards.

Castlegar 1. 2. The FAO is a staff member of the University Life office. Other student support services 33 . such that for each program intake. Students are more willing to seek help from someone when they have seen them in a relaxed. they visit the classes and introduce their role. particularly helping high need students pay for basic educational and living expenses. • • Selkirk College. They then take the students on a campus tour. Since the non-traditional term system results in tuition installments that do not coincide with the student loan disbursement schedule. to explain the repayment process and the importance of keeping a student loan in good standing. in some cases. Victoria 1. Financial Aid Office • Scholarships and bursaries assist in supporting student success. Financial Aid Office • Visits each loan-eligible program that is nearing completion. social setting. the FAO works closely with Finance to ensure that student loan recipients are not penalized due to late payments and that. Also included are handouts of lender contact information and instructions of how to update one’s address with all lenders they’ve dealt with.• • The Employment Services Office helps students with resumes and finding jobs. The Financial Aid Advisor includes their contact information and invites them to call them anytime if they have further questions. Royal Roads University. to allow for personalized payment plans to be put in place to fit the loan disbursement schedule. The counselling department is planning to establish a student success program at the beginning of each term starting with the 06/07 year.

there is no specific outreach carried out. Financial Aid Office • Due to the close connection with Student Advising and Student Records. Disability Advisors assist students with learning disabilities in accessing equipment or other tools helpful to their success.• Peer tutors. • Simon Fraser University 1. If a student is in good standing and drops below the 60% course load level. These students receive an e-mail and a letter. Other student support services • • Special programs are run for students on academic probation. Communicates with those about to graduate via e-mail and/or the Financial Aid department website.g. supervised through the College’s Student Access and Support Department. Some withdrawing students are given information through one-onone advising. are hired under the work study program to help students who are struggling with their studies. to assist them in understanding the expectations for repayment and the consequences of default. • • • 2. as well as for those required to withdraw from the University. all services offered by Student Services and the faculties as well as services offered to students by paraprofessionals (e. peer educators. General awareness-building of support services that increases retention and student success.) Thompson Rivers University. but are not required to see a Financial Aid Advisor as part of the process. For example. Kamloops 34 . the Financial Aid Office is provided a list of students required to withdraw. Regular ‘unsuccessful semester’ reports are generated for BCSAP recipients. student learning commons. General topics include important dates the student should know about for repayment and information on other assistance programs.

g. Abbotsford 1. All students are required to take University 101. and following up with faculty re attendance problems.bc. Financial Aid Office • • • Uses loan repayment materials available from US organizations. Financial Aid Office • • Tracking withdrawals. Trinity Western University. e. Financial Aid Office • • Students have a strong relationship with frontline staff and often return to discuss interest relief options. using a US process that already exits.ucfv.ca/future/cfpe/CFPE. Numerous references to the publication are made on the general college website. Other student support services • • The university’s Student Life department has an extensive retention program that involves Financial Aid. Does presentations on ‘Financing Your Education’ for high school students and parents. Fact that tuition is very expensive means that students do careful planning before they attend. Students are referred to this resource on a regular basis.1. customizing their discussion for Canadian students. Planning to implement an on-line exit counselling process for Canadian students.htm . University College of the Fraser Valley. 35 . 2. was developed to decrease the amount of student loans required by students and to increase their financial assistance awareness. Langley 1. those accessing the college financial aid website. available at: http://www. The ‘Comprehensive Financial Planning Workbook’.

The Student Union Society has developed a very close relationship with Financial Aid through the emergency funds they raise to assist students in crisis. Other student support services • The Financial Aid Office has a close relationship with Educational Advising. When the provincial work study program was terminated. creating a sense of community and a commitment to program completion. the college developed a work study program open to all students. which will result in greater completion and thus decreased default rates. students are given a complementary copy of the ‘Debt Free Graduate’ and encouraged to read it. Retention issues have become an area of interest for faculty and administration. Often students re-enroll when they still have a good chance of successful completion. When they fall below the 60% required course load. Students are able to work on campus. Financial Aid administers these funds. • • • • • 36 . Institutional bursaries have been developed to assist the neediest students meet some of their need unmet by the student loan program. Activities such as Orientation. Financial concerns expressed by students to staff in these other support areas are also quickly referred to Financial Aid. Financial Aid Office staff contact them by phone or e-mail to advise them of the financial consequences of dropping classes. Counselling and Disability Services. Intramurals. Student life activities have increased to encourage engagement with other students and the school. and the Leadership Institute have been successful in bringing students together and keeping them to program completion. Students are monitored on a weekly basis for 60% course load. Work study positions connect students to the college and faculty. Counsellors continually run student success workshops on study skills. This process builds a strong relationship and students remain in close contact with the Financial Aid Office when making decisions that will affect them negatively. allowing them flexible hours to fit around classes and an opportunity to have experience related to their field of interest. • 2. and when students need these resources to be successful referrals are quickly made.• • At Orientation each year. who would otherwise be unable to complete their studies.

The University of Northern British Columbia. Workshops on student loans are presented to Faculty and Staff. The financial aid office refers students they consider ‘at risk’ of withdrawing and/or failing to other support services to assist them stay in school and/or plan to return to school after time out. They provide information on how to handle their student loans after graduation and options if they are not able to repay. Workshops are delivered at orientations. Other student support services • The university offers ‘Imagine UBC’. • • 2. Financial Aid Office • • Reports are generated by the financial aid office on a regular basis that identify students who drop below the 60% (‘full-time’) course load. email notifications are sent to them prior to the university withdrawing their loan eligibility. • • • 2. The drop/add form advises students to consult with the financial aid office if they are receiving student loan funding and are dropping classes. Other student support services 37 . plus Student Success and Student Leadership Programs. When students’ course registration drops below the required level. The financial aid office follows up on students (on student assistance) who have been identified by faculty for non-attendance or heading towards failing grades. Exit Workshops are offered to students who are graduating. Financial Aid Office • Presented by UBC’s Financial Aid & Awards in conjunction with the National Student Loan Service Centre.The University of British Columbia. Prince George 1. Vancouver 1.

• • • Financial aid & awards presentations are part of Orientation. Financial Aid Office • • • Student Awards and Financial Aid presentations are included as part of all student orientation programs. Counselling Services. it is often discovered that the student is concurrently enrolled at UVic and another institution or has dropped below a full course loan for medical reasons. Offers bursary. work study and emergency loan programs that assist in the retention of students in the margins. Financial assistance information is provided to prospective students by University Liaison staff during visits to high schools. SAFA presentations are offered throughout the year at the Student Transitions Centre on campus. As a result. • • • • 38 .g. University of Victoria 1. Reports are generated by the SAFA office on a weekly basis that identify students who drop below a 60% course loan or 40% for students with disabilities. The students can be advised of split enrolment and/or appeal policies and procedures to keep their loan in good standing. SAFA is included in the Grad Year Orientation program to provide students with information about the repayment options available prior to their departure from the University. Health Services) to assist them to stay in school or withdraw from studies with medical approval. The student may be referred to counselling or other services as a condition of granting the appeal. Students placed on academic probation have the option of returning earlier than the normal ‘one year out’. Refers students considered ‘at risk’ of withdrawing and/or failing to other support services (e. by submitting an appeal. Phones students who drop below their required course load to inform them of the implications on their student assistance.

Financial Aid Office • • Generates reports twice monthly that identify students who drop below the 60% (‘full-time’) course load level or who withdraw. Other student support services • • Financial assistance information is provided by the college’s Community Liaison staff members. In some situations. Students are encouraged to use the www. 2. the financial aid office contacts students who drop their course loads below ‘full-time’. The financial aid office refers students they consider ‘at risk’ of withdrawing and/or failing to other support services such as counselling. The financial aid office follows-up on students with student assistance who have been identified by faculty for non-attendance or heading towards failing grades. to inform them of the implications for their student assistance.bcsap. and for parents. Information on topics such as loan repayment and interest relief is distributed at events such as the College Information Night and New Student Orientation. Other student support services • Orientation programs are offered for both new and transfer students.bc. Financial aid works with students who need to ‘insert’ back into advanced levels of a program to complete their credential.ca website for financial planning and to review repayment scenarios. Vancouver Community College 1. students are referred to take Math or English upgrading either concurrently or before resuming postsecondary studies. • • • 2. In some cases.• Copies of ‘The Debt-free Graduate’ are distributed by SAFA at all parent and student orientation sessions. There is a plan to resume the practice of having financial aid staff visit individual classes during the first Orientation weeks of classes in • 39 .

• • Non-credit (‘Ready. to provide information on student loans and financial assistance. Set.September. 40 . Financial Aid works closely with the Disability Services Advisor to assist students and ensure that they are aware of financial assistance opportunities. Go’) Student Success courses are offered.

Other student support services 41 .Improving Government Loan Repayments: Selected Canadian Post-secondary Institutions Acadia University. as well as flyers posted all over campus. sets up an information kiosk twice a year. they are counselled re their responsibilities related to their loans. Students withdrawing on-line are sent a repayment information sheet. and provided a copy of the ‘OSAP Repayment’ brochure. revision of terms for those having trouble repaying due to unemployment or low income. and the availability of non-profit credit counselling. with the objective of improving the knowledge base of students and parents to ensure they are aware of what needs to be done re financing the student’s education. handing out brochures about OSAP and the repayment brochure as well. with an accompanying article about the seminar written by a student. returning to school with outstanding loans. Twice a year the National Student Loan Service Centre presents Loan Repayment seminars. Financial Aid Office • A campus-wide Financial Literacy program is being developed. Ottawa. Ontario 1. When students withdrawing in person are referred by the Registrar’s Office (see below). what happens if loans are repaid. This year an ad will be placed in the College newspaper run by students. trouble encountered in repaying loans. Financial Aid Office • Distributes the brochure ‘OSAP Repayment’ which covers when and how to repay student loans. Nova Scotia 1. Along with other student services (see below). Wolfville. Algonquin College. advertised via the College’s student e-mail account info board. Gives information sessions to Business classes as part of their Student Success class. • • • • • 2.

Twice a year student services departments put up kiosks in high traffic areas to provide information to students. Student Services departments (e. A regular e-mail communication strategy is in place to inform OSAP applicants of deadlines and other issues regarding their loan (e. with membership including the Director of Student Awards and Financial Aid. Financial Peer Assistants offer one-on-one or group assistance on budgeting.g. Student Awards and Financial Aid has ‘mandatory’ information sessions for firsttime borrowers which provide targeted information on their loan and begin to develop financial literacy regarding budgeting.• • The Registrar’s Office requires students approaching them in person to withdraw to have a form signed by the Financial Aid office. • 42 . During orientation (and just before government loan pickup). students who aren’t applying for a government loan but have loans from the past are reminded to apply for interest-free status. Financial Aid Office • In order to establish a relationship with the Student Awards and Financial Aid office prior to admission. applicants are e-mailed the name and e-mail address of their financial aid officer. Counselling. • • • 2. St. credit etc. money management. money management and credit. promote student retention throughout the year. Targeted e-mail invitations to sessions held on campus are sent to graduating students requesting RSVP’s. Brock University. Other student support services • The university has a Retention Committee which designs and coordinates retention initiatives. Catherines. Ontario 1. working with Residence Life staff and Health Services. Employment Services) together with Academic departments.g. with instructions on how to apply for government student loans and relevant financial aid at the university.) Annual student loan repayment seminars are presented by the National Student Loan Service Centre and promoted by the Student Awards and Financial Aid office.

and Athletics. 43 . Lacombe. so that students are informed about the need to maintain a 60% course and the implications for college scholarships. Students who complete the budget portion of Beat the Rush are issued a gold card which allows the student into a fast-track line to pick up their loan documents on the first day of term. Students on US government aid are required to complete the on-line entrance counselling and are advised about on-line exit counselling. including having participants do an on-line budget exercise and referring them to the Financial Aid office to pick up information on loans and repayment. Course withdrawal forms require a signature from Student Finance/Financial Aid. Canadian University College. Financial Aid Office • All graduating seniors are personally contacted prior to April commencement with information regarding ‘what happens to loans now’. • • • Canadore College. Special Needs. Other student support services • The College’s Campus Life department coordinates four ‘Beat the Rush’ sessions each summer to provide new and returning students information on services such as Registrar’s Office. Ontario 1. a one-page letter that includes contact numbers for the National Student Loan Service Centre. 2. Included is a brochure that discusses options and programs such as Interest Relief and gives contact numbers for those programs. Alberta 1. the Financial Aid office receives calls in the fall from grads asking ‘what was it you told us last spring?’ Information about loans. Financial Aid Office • Presents one portion of the ‘Beat the Rush’ program (see below). asking about the issues driving the decision to leave. repayment options and links are on the institutional website. As a result.• All students who leave the university are requested to complete an Exit Survey. Financial Aid. Next year the survey is being expanded to students who do not return. North Bay.

The cardboard folder issued to students includes the following inserted in it: (a) a four-page summary of financial aid and awards programs. Financial Aid Office 44 . loan repayment. Oshawa. Interest Relief. • • • • • Laurentian University. the consequences of default. (c) a student loan summary form where students are encouraged to record the details of each loan they receive. Ontario 1. with door prizes to encourage attendance. Has sufficient bursary funding to help students who may otherwise have to withdraw due to financial hardships. Makes sure every OSAP recipient receives a copy of the OSAP Repayment brochure at graduation. including information about the OSAP process. how much of it will be issued to the school and how much remains for the student. Financial Aid Office • Confirmation of Enrolment signing is done in mandatory group sessions (around 30 students each) during which emphasis is placed on the importance of repaying OSAP student loans. and (d) a budget sheet. A cardboard folder is distributed (see below).Durham College and the University of Ontario Institute of Technology. with details on how much borrowed. Ontario 1. when. After the first three weeks of classes. and the importance of keeping lenders updated. documents are then distributed in one-on-one appointments. Takes advantage of every personal contact with students to emphasize the importance of repayment and the consequences of default. which includes important contacts such as the CanLearn website. Sudbury. Students are given advice on creating and sticking to a budget to be successful. Durham’s Financial Aid & Awards office and bank student loan 1-800 numbers. Students are advised to use the folder to store all copies of each loan document and be sure they have all the information they need at graduation to stay organized financially. repayment options and programs in place if students end up not being employed at repayment time. Arranges for Lender representatives to come on campus to provide repayment information. (b) an OSAP repayment Q & A brochure.

• • • Offers repayment seminars for students in late winter each year. They are allowed to register in 60% of a full course load. Other student support services • An ‘Introduction to University’ program is offered for students who don’t quite meet the entrance requirements. intended to be a real eye-opener to spending and an influence on student spending habits. Financial Aid Office • Informs students of the implications of dropping courses through the intranet McMaster University Gateway to Student Information (MUGSI).ca/ includes an interactive ‘Budget Builder’. Student participants are given a booklet ‘Information for Graduating Students’ as well as FAQ sheet (how do I repay my loan? what if I don’t secure a job? etc. in cooperation with the regional representative of the National Student Loan Service Centre. must take non-credit courses in areas such as study skills.mcmaster. 2. Loan repayment information is sent to every student who applies to graduate. Other student support services 45 . and at the time of loan pick-up. Every student who withdraws from full-time studies is sent information on their loan repayment obligations. Hamilton. and are monitored closely to ensure they receive the support they need to succeed. Ontario 1. Coming soon is a budgeting game. Has offered loan repayment sessions targeted to upper level students/those close to graduation. • • • 2. A mentoring and support program which is offered to students who experience academic difficulties in their first year has proven to be very effective in keeping students in post-secondary. The department website http://sfas. • McMaster University.) Has held budgeting workshops as a way of showing students that making wise decisions in their spending now can save them a substantial amount of money in interest payments later.

e-mail (general and targeted). 46 . campus communications.) Detailed information is included in withdrawal letters regarding debt management responsibilities and resources. is anticipated to improve student satisfaction and engagement. and the most effective . Information sessions are promoted via the web. (Note that this mandatory counselling is no longer offered since the preparation and the sessions themselves were labour intensive and lengthy and proved to be unmanageable as a strategy. as well as enhanced academic counselling and career advising support. personal counselling services to students with disabilities and a peer helper program. Toronto. Targeted e-mail is sent to recent grads.telephone campaigns. • Ontario College of Art and Design. It is hoped that these initiatives will have an indirect (and positive) impact on student loan repayment. including calls to recent graduates to invite them to participate. Mandatory one-on-one debt management counselling was developed for inter-session students. • • • 2. providing basic information and inviting them to come back on campus for one-on-one advising or to attend info sessions. including having the National Student Loan Service Centre on site to deliver repayment seminars. and various strategies for repayment. their loan responsibilities. Ontario 1. Often after these sessions. posters. students moved away from their reliance on student loans and self-funded for the remainder of their studies. who tend to be the College’s students with the highest debt risk.• The Centre for Student Development offers services to help students with academic skills. Other student support services • The development of alumni services and communications. Each faculty office provides students with guidance through the help of a student advisor who provides assistance with course choices and direction. Financial Aid Office • Implementing a series of information sessions on financial aid issues throughout the year. These were extremely successful in helping students understand how they accumulated their debt.

When students obtain their government assistance. Financial Aid Office • An Edulinx representative visits the campus in March each year and meets with students to talk about consolidation of student loans. Such information is provided to Arts and Science students as part of their orientation. At least two Awards Office staff are available each business day to conduct ‘financial advising’ sessions. A table is 47 . • Red Deer College. Red Deer. during which sessions are held on financing a Queen’s education. Academic Advisors remind students that if they drop a course and are loan borrowers. Borrowers who cease to maintain the appropriate course load required for government assistance are sent a letter informing them of their status and encouraging them to contact the National Student Loan Service Centre. with residence dons encouraged to contact the Awards Office to arrange these sessions. Alberta 1.Queens University. Financial Aid Office • The publication ‘Financing Your Queen’s Education’ is sent to students with their offer of admission. • • • • • 2. Ontario 1. with the focus on how to be effective in financial advising sessions with students. Other student support services • The Faculty of Applied Science offers spring sessions to students who are struggling. (Note: most first year students are living in residence. they are provided with an information sheet re what to consider in relation to government assistance. Kingston. Participates with the AMS/student government in a ‘Financial Aid Awareness’ week. with the aim of helping them to successfully complete first year and better prepare for the second year. they should contact the Student Awards Office.) The Queens Awards office has hosted two professional development sessions for Awards Officers.

marital status. with good signage. including contact information for assistance. and (b) Sheridan. which details where and how the student loan funding is to be directed (i. a one-on-one interview is initiated to ensure the student is aware that a program withdrawal or reduction is course load (below 60%) will put the student into loan repayment status in six months. Hosts ‘Loan Repayment Seminars’ given by Edulinx on an annual basis. residence change. Financial Aid Office • At loan pick-up time each year.e. Communicates with all students who have been placed under academic progression warning status to ensure that they are aware of the requirements to continue their eligibility for student loan funding. Ontario 1. Information about consolidation is published in the bi-weekly student newspaper in March. etc. withdrawal. • An information sheet with details about loan consolidation is given to students along with their graduation credential if they have had government student funding. The Registrar and Coordinator of Student Funding and Awards meet with the chairpersons of programs that show high default rates to discuss strategies for informing students about their responsibilities with student loans. reduction in course load. and students stop and ask questions. financial status.set up in a visible area of the college.) The package also outlines the consequences of failing to meet these obligations. Colleges and Universities. • • Sheridan Institute of Technology and Advanced Learning. • • • 48 . All students who have been flagged with this status are checked to ensure they have fulfilled the academic requirements to retain their student loan eligibility. When a student has been identified as having academic progression issues. each student who is receiving a loan is provided with a 3-page information package which includes information from (a) the Ministry of Training. Oakville. towards tuition fees and other education-related costs) and directions to contact the Financial Aid office if there is any change to the student’s personal circumstances (program change.

• University of New Brunswick. publicized on campus and via e-mails to fourth year students. • • • University of Ottawa. 49 . A Sheridan work/study program is in place for students who do not qualify for the provincially-funded work study program. Ontario 1. with repayment strategies reviewed one-on-one if requested. The financial aid office website includes a sample budget and budget worksheet. Comedy skits are also used with first year students to provide a fun.• A healthy financial bursary program is intended to help students who have financial need. information on ‘Assessing Your Net Worth: Living on Your Own After Graduation’ and a link to the CanLearn website. Fredericton 1. Edulinx Government Student Loan Repayment Information. Debt Reduction in Repayment. A handbook developed by the Fredericton campus financial aid office is provided to U. Handouts. Financial Aid Office • Hosts loan repayment sessions given by representatives of the National Student Loan Service Centre. with direct e-mail sent to graduating students inviting them to the seminar. students. Individual appointments are given to students who require more personalized information. In addition to providing funding for students ineligible for government loan assistance. as well as provincial resources. bursaries can also be used by the student to repay student loan overpayment or to make monthly loan repayments while they are still in school. http:www. which include information on Interest Relief. Financial Aid Office • Budgeting 1001 Workshops are offered to first year students to increase awareness of all financial options.ca/studentservices/departments/finaid/ Repayment seminars offered two or three per year. are sent to those students who do not attend.S. to assist them with education and living costs and/or help them make monthly loan repayments or cover loan overpayments while they are still in school.unbf. a student debt fact sheet. interactive way to provide information.

Financial Counsellors are available on a daily basis to meet with students, assisting them with their budgets and informing them of the impact of debts during and after their studies.

2. Other student support services • The university has several programs to help students succeed in their studies and complete their academic goals, including University 101, study skills counselling, writing help and resources and a student mentoring centre.

University of Toronto, Ontario 1. Financial Aid Office • An information sheet is mailed to students who have withdrawn or reduced their course load to make them aware of loan repayment, interest relief, return to classes, and updating their address. A National Student Loan Service Centre representative comes on campus to do workshops on Repaying Your Student Loans. It is advertised as ‘Including Tips on Saving Yourself Money.’ The Financial Aid office website has detailed information about repayment of student loans: http://www.adm.utoronto.ca/fa/counselling/loan_repayjment.htm E-mail reminders are sent to students about keeping their previous student loans interest-free if they are not continuing to borrow. Institutional funds assist students who might otherwise have to withdraw due to financial reasons.

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Improving Government Loan Repayments: Provincial/Territorial Governments
Alberta • Currently in the preliminary stages of developing a Loan Repayment Communication Strategy intended to educate students on loan repayment as well as debt management tools (Interest Relief and Revision of Terms). A number of communication tools are being explored, including different channels of communications: (a) direct to students via phone calls, Interactive Voice Response (IVR) messaging, e-mail messaging and letters at different points throughout their loan lifecycle; (b) improved communications to students in their educational institutions (e.g. posters); (c) improved communications to financial aid administrators to assist in educating themselves and students. Has an extranet site that all registered educational institutions can access for information on student assistance. The documents approved under the Pan Canadian Designation Policy Framework (the framework itself, plus the Best Practices Guidelines) are being added to the site. Offers module-based training to educational institutions in various aspects of student loans. The addition of a training module relating to default prevention strategies is being explored. In August 2005 introduced self-serve web-based entrance and exit counselling sessions as a default prevention strategy through their service provider Edulinx. Within the context of their communication strategy will be working on promoting the use of these tools. Alberta’s service provider Edulinx offers Repayment Preparation Seminars in educational institutions. Has numerous guides distributed and available to students and parents which range from planning for post-secondary to exiting post-secondary. The guides are available on the Alberta Learning Information Site (ALIS) at: http://www.alis.gov.ab.ca/studentsfinance/prepare.asp Guides to educate students and parents about planning for postsecondary include PowerPoint presentations (with instructor’s notes). Mails an Exit Guide to all students in their final year of study. The Exit Guide, which describes strategies for paying back a student loan, can be found at: http://www.alis.gov.ab.ca/pdf/studentsfinance/exit.pdf

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As of August 31, 2006, a self-service website will be available to allow students to manage their loan on their own by revising the terms of loan, including changing their payment amount, the loan term (how long they will take to repay the loan), and/or the payment date. During 2006/07, a communication strategy will be put in place to educate students about loan repayment and debt management tools, such as revision of terms and interest relief. These include posters in educational institutions, wallet cards for students, envelopes for student to store loan documents which provide key messages and contact information, review of communications to students to ensure language is plain and key messages are easy to find, promotion of entrance and exit counselling, as well as the new on-line self-service options, and an outbound e-message campaign which will provide students with key messages at specific points during their loan life cycle. Has a new website ‘Learning Clicks’ which includes a Grade 9 to 12 Checklist of things students need to do to plan for post-secondary, including financial planning. A section entitled ‘Look for Free Money’ describes how to do a scholarship search. A budget calculator is included, as well as a link to ‘Stretch Your Dollars: Budgeting Basics’, a publication of the Credit Counselling Services of Alberta. An on-line version of the publication ‘Money 101, Alberta’ is available, which includes sections on educational costs, budgeting techniques, financial management skills, and sources of financial assistance. Learning Clicks can be found at: http://www.alis.gov.ab.ca/LearningClicks

British Columbia • Jointly funded and developed a four-year pan-Canadian communications initiative aimed at encouraging K-12 students and their families to plan for post-secondary education. Initiated and funded, partnered with the Canada Millennium Scholarship Foundation, an advisory committee of K-12 teachers and their development of a Career Planning 10 teacher resource (an interactive DVD re post-secondary options). Funded the B.C. Business Council’s development of an interactive career choices DVD ‘The Third Option’ (current edition called ‘The Third Option Rocks’), which includes information on expected salary, can be rented free at Rogers Video stores in B.C. Sends student loan brochures to K-12 administrators as a resource for teachers and to be distributed to targeted students/families.

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a new html version of the BCSAP policy manual. sponsoring/providing awareness conferences and presentations. Developed series of brochures on various components of student financial assistance.C. applying and repaying. Promotes public post-secondary institution-based initiatives by: (a) engaging Presidents (promoting student success through the accountability framework and attaching student aid policy requirements to government funding). Approximately 20 to 30 schools are visited annually. a new loan administration manual.C. Student Loan Improvement Plan will provide schools with tools to improve the administration of BCSAP at their institutions. products and services including downloadable presentations and products. (b) promoting discussion through sponsoring and publishing research on default indicators and school-based improvement techniques. Student Loans. It is expected that the sample B. (d) supporting financial assistance officers and departments. students and families to tools for post-secondary planning. • • • • • • 53 . resulting in a reduction of withdrawals and unsuccessful completions. Student Loan Improvement Plan. financing.) Presented ‘The lifecycle of the loan’ (in PowerPoint) to graduating students at the University of Victoria to provide them with an understanding of their obligations and options with respect to B. and loan administration forms and letters. assisting in the development of the B. Career Colleges Association Loan Administration Workshop and Default Management Workshop.g. research papers. career and school choices. assisting in cross-industry development of ‘The Student Success Plan’.• Re-designing the B. such as North Island College’s efforts to develop an on-line system for early identification of high-risk students and enhanced communications.C. Student Assistance website to provide more access for K-12 administrators. (c) providing funding for pilot projects. Re-designing the BCSAP website to provide easier access for financial aid administrators to tools. including planning. a sample B. and an increase in loan repayment rates.C. Randomly conducts site visits to private institutions to provide them with information and tips on improving their BCSAP administration efforts. Actively engages private school owners and operators in strengthening designation requirements and supporting their default performance improvement efforts (e.C.

access.• Participated in the development of the Pan Canadian Designation Policy Framework which formally authorizes engaging post-secondary institutions in student loan performance improvements. (g) assisted the service provider to enhance their website and include an updated log-in process for students to access their on-line statement. (b) conduct contract performance audits and cohort analysis to develop operational and policy improvements (e. Initiated and co-chaired federal/provincial committee to promote and develop default management initiatives.g. Will be soon posting a new Request for Proposals to re-procure a service provider with an enhanced focus on performance. Interest Relief. Conducted a pilot project through the ICCSFA Special Investment Fund (SIF) on communications with students during their grace period (six months following graduation). rather than just the last day. with monitoring done of the enhanced materials’ success in reducing default rates for a small sample of students. using government resources. recently obtained B.contact the service provider immediately’. to prevent skips and get students back on track prior to them becoming serious defaulters. client service and portfolio analysis.C. (d) introduced very successful on-line PC and tele-banking services. (f) initiated a more integrated process between the service provider and the Student Services Branch to update student addresses. sponsoring/providing presentations to institutional/industry conferences. including policy and administration enhancements. New and innovative communication materials were developed. Interest Relief policy changes aimed at reducing application barriers and providing opportunity for on-line application for B. (c) conducted a review of all form letters and web communications. (h) enhanced the flexibility of the loan repayment process by allowing borrowers to make their scheduled payment at any time in the month. Working with the BC Student Loan Service Provider: (a) implemented a new customer service satisfaction survey.g.g. Actively participates and promotes federal/provincial Inter-governmental Consultative Committee on Student Financial Assistance (ICCSFA) subcommittees examining and developing administrative improvements and research-based policy/funding options focused on student success (e. and awareness of best practices (e. retention and repayment assistance). • • • • • 54 . including message ‘pop-ups’ to inform them of important information such as ‘default status . (e) initiated a mass e-mail campaign to remind students to update their address and interest-free status.C.

mb. Has five student advisors assigned to educational institutions in a caseload system. There are two government loan counsellors who follow up with students after they’ve graduated. with the government collection agent) to manage student debt. improving communications products and web-based services.html Delivers ‘From Start to Finish’ Orientation/Repayment Sessions. Is in the early stages of developing a debt servicing tool. Targeting SSB resources to the prevention of defaults by establishing the Debt Management Unit. Several schools have requested a review of their in-house literature/presentations/correspondence about loan repayment.• Reorganizing Student Services Branch resources to better support institutions by improving access to student financial assistance application information and loan repayment data. and improving access to dedicated school liaison staff. These PowerPoint presentations are one-hour in duration. Has details regarding loan repayment on their website: http://www. Provides copies of a brochure on loan repayment and debt reduction opportunities ‘From Start to Finish’ to schools on an annual and requested (supplementary) basis. to assist students with postsecondary planning. They offer options to ‘at-risk’ graduates such as extended interest relief and reduced payments on their Manitoba Student Loan in order to ease some of the financial pressure on graduates who might otherwise default on their loans. • Manitoba • Offers to assist post-secondary institutions to help them develop entrance and exit sessions and other tools. targeted at student loan recipients enrolled in participating Private Vocational institutions. and in the case of borrowers beyond 150-day default. which will be in the form of web-based exit counselling.ca/educate/sfa/pages/repaying_en. The advisors work directly with students at the schools or with school staff to educate and advise about loan repayment.gov. and they have worked with these schools to improve content and message. which will work both internally and externally (with the service provider. with the initial half hour for students in the first six weeks of their program • • • • • • 55 . as well as provide help with rudimentary financial planning.

Individualized handouts are produced for students detailing sample repayment calculations of both their federal and provincial loans. The objective is to ensure students are aware of (a) their responsibilities as students and as borrowers. • New Brunswick • The Post-Secondary Liaison Officer provides debt management sessions to graduating students at public and private institutions on an as needed basis. and will not issue students a diploma until they have attended the session. (b) their rights and responsibilities as consumers. The anticipated release date of the new designation policy to educational institutions is tentatively scheduled for June 2006. (d) loan repayment requirements. Additional material and handouts are included on the Apprenticeship component attached to the Hairstyling/Esthetics field. In addition. Private institution Scientific Marvel requires that all students who complete a program must attend an exit session. The exit session for Manitoba Emergency Services College covered both Manitoba and Saskatchewan loan recipients. Delivers orientation sessions to student loan recipients enrolled in Hairstyling/Esthetics programs. Students do not get their loan documents until they attend the session. Handouts include PowerPoint presentation notes. loans to these students are disbursed in four installments (two CSLP. the monthly sessions involve mandatory attendance at a PowerPoint presentation and discussion which covers similar content to the ‘Start to Finish’ orientation sessions outlined above. and (e) debt reduction opportunities. Facilitated by Manitoba student advisors. brochures detailing Canada/Manitoba Student Aid programs. • 56 . • Has delivered exit sessions facilitated by a Manitoba student advisor at a number of private vocational institutions to cover student repayment responsibilities. ‘Start to Finish’ brochures. one MSLP) to reduce the risk to the overall portfolio since these programs have substantial dropout and default rates.and the last half hour for students in the final six weeks. Optional attendance exit sessions are hosted by Academy of Learning (Winnipeg North and Winnipeg South). and contact information. Manitoba student advisors have made presentations of the entrance/exit material at Robertson College to all their incoming students. two MSLP) instead of two (one CSLP. while CDI College hosts optional attendance entrance sessions. (c) the Canada Millennium Scholarship Bursary and Manitoba Bursary eligibility requirements.

(d) High unmet need of over $5. Review career plan: • • • • 57 . the following information is reviewed with the student. The students that are seen by counsellors are typically from internal referrals (i. Typically the target audience includes high school students and parents. In the past two years have partnered with Regional Economic Zonal Boards who organize events for their local high schools. There are two Career Counselling Specialist positions within the Student Financial Services Division of the Department of Education. Appeals Officer and/or Senior Assessment Officer. Reasons for referral include: (a) current high student debt and requesting loans for a subsequent program. (b) switching programs of study after the permissible time (after the end of the fourth semester or midpoint of the program).000 per semester. One of the esthetics/hair design private schools has requested this session yearly. Students were informed about Interest Relief and debt reduction opportunities and of the importance of ensuring the lender has up-to-date contact information. leading to timely completion of post-secondary with a reasonable student loan debt. About two years ago offered a brief information session on repayment to the private schools in St. The goal is to provide career/financial counselling and information to Newfoundland and Labrador students to ensure they make sound career decisions. targeting students about to graduate. • Newfoundland • Offers both student and parent information sessions across the province in conjunction with local career fairs in the fall and spring. (e) Referrals from Management. (c) Not completing the program of study in a timely manner. John’s. among other things. Student Financial Services (SFS) will be working with and encouraging institutions to come up with strategies and practices to improve their students’ loan repayments. Presentations include details of the Newfoundland and Labrador Integrated Student Loan process and on the importance of making informed career decisions that will ensure students graduate postsecondary in a timely manner with reasonable student loan debt.• After the release of the designation policy. within the Student Financial Services Division). improving the loan repayment rates of students. Plans are in the works to hire a Designation Officer to work with educational institutions on. Once the student is contacted and an appointment scheduled.e.

(e) available resources.(a) academic background. Schools with Ontario Student Loan default rates above 25% for three consecutive years. or a most recent rate above 40%. students who do not have the academic background to be successful enroll and end up withdrawing. Students would not be eligible for government assistance during this upgrading. (d) labour market awareness. attempts will be made to contact the student to remediate the loan through strategies such as Interest Relief.) A second potential ‘pilot’ involves a private school strengthening their admission process. but out of two hundred and twenty-five attempted contacts. For many of the private schools in Nova Scotia. Interest Relief information etc. the privacy office is being worked with to determine if individual repayment information can be discussed with schools. Nova Scotia • A planned ‘pilot’ project will focus on students who are either entering repayment or are in repayment. Once the school is satisfied that the student has a more solid academic foundation. These rates and default rates by program and institution are accessible to prospective students from the Ministry/OSAP website. In many cases. and then. (f) feasibility.) A ‘Case Management’ pilot will involve identification of students who’ve missed their first or second payments. (b) accumulated debt. (c) projected debt. in cooperation with schools. (A pilot was previously tried using only the Nova Scotia Student Assistance Office. only five students were actually spoken to. This school is looking at running a ‘bridge’ program similar to upgrading. the student would enroll in the post-secondary program and apply for assistance as necessary. a student can enroll as a mature student. (b) limitations and supports. in which students would receive a better academic foundation before enrolling in post-secondary studies. • Ontario • Institutions in Ontario are required to participate in the annual collection of graduation rates by program. While a number of educational institutions have expressed interest in this project. with entrance requirements being very flexible. (d) total debt ratio. values and perceived attitudes. Review financial plan: (a) cost of training. are required to engage an experienced third-party default management firm to assist • 58 . with the intention to work with schools to provide supports to such students (exit counselling. (c) suitability as it relates to interest.

g. o for schools that are required to submit a plan.g. interest relief program. The default management firm reminds students of repayment obligations. implications of default for the student. revising the term of the loan. the Ministry also requires a detailed report from the default management firm upon its implementation. consolidation process. 59 .the school in developing a default reduction plan. scholarships/bursaries) o conduct entrance loan counselling sessions and provide information materials (e. o some schools engage the default management firm to maintain contact with students when they exit school and enter repayment. contact information for loan servicing) o develop and administer a student loan repayment quiz o conduct an exit loan counselling session and provide information materials • Data Management and Monitoring Implementation of the Institutional Default Reduction Plan: o track student attendance and academic progress o develop a form/protocol for students to provide the institution with address/telephone number updates o Excel file with a layout for monitoring implementation of the plan. • Institutional Career Services/Placement Assistance Activities: o develop a Resource Centre for Career Information. Schools must also file a mid-year and year-end report on implementation of the plan. • Institutional Admissions/Enrollment Responsibilities and Initiatives Identified in Default Reduction Plans: o review graduation rates by program o review standards for admission and adequacy of entrance exams and minimum test scores • Institutional Financial Aid Responsibilities: o meet with students to develop a budget o inform students of other financial resources that might be available (e. the names of loan recipients and the dates that each student is provided with each of the default management services and the date they complete or withdraw from the program. and loan servicing contacts. grace period. repayment assistance programs.

the Deferred Payment Plan available for those with financial problems and where to call for further information. o information on graduation rates. Information on this program is available on the Aide financiere au etudiants website and in all financial aid publications at post-secondary institutions in the province. • Institutional Enhancement and Expansion of Relations with Employers: o many post-secondary institutions in Ontario. o institutions also use this information to assess relative performance of programs. and a description of a ‘borrower in default’ is provided. • 60 . and default rates by program are posted on the Ministry and institutional websites for prospective students to review. When remission is granted.o conduct Grace Period Employment Surveys and Counselling • Collecting and Sharing Institutional Information on Student Outcomes: o the Ministry coordinates an employment survey of graduates through a common independent and experienced survey firm. including all public colleges. o schools have the option to select an enhanced survey whereby they can gather information on graduates’ post-study incomes and whether they obtain employment in a related field. A loan remission program is available for students who have completed a Bachelor’s degree or college-level technical training within the normal time limits. how interest is calculated. Some institutions have elected to discontinue or significantly revise programs that have poor outcomes. conduct surveys of employers’ satisfaction with graduates. Repayment obligations are clearly explained on the loan agreement forms. 15% of the student loan debt is forgiven. graduate employment rates. A letter is sent after the student has completed his or her full-time studies indicating the start date for student loan repayment. Schools pay the survey firm for completed surveys. Quebec • • • Student loan repayment information is included in every publication and on the Aide financiere aux etudiants website.

g.Saskatchewan • Is in the process of developing a number of tools for use by department staff and educational institutions.gov. Saskatchewan has an employment supplement program and a rental supplement programs for families. Revision of Terms and Debt Reduction in Repayment programs.sasked. Students are advised to seek assistance through the Federal government’s Interest Relief/Extended Interest Relief. The Yukon financial aid booklet addresses some generic questions • 61 .ca:7777/branches/sfa/student_loans/p dfs/repaymentquicktips. the Yukon Grant program provides non-repayable assistance to students. Clarification is provided if students have enquiries regarding repayment. Yukon • • While there are no territorial loans. Students who come to the government Financial Aid office are informed of the eligibility criteria and have access to the Canada Student Loan pamphlets.pdf o PowerPoint presentations on repayment that can be used by educational institutions. • Department staff will provide information sessions to students at the educational institutions at the request of the institution. as well as the Saskatchewan Child Benefit). Types of materials that have been developed or are being developed include: o a student handbook which provides information on the entire loan cycle.sk. o PowerPoint demo on how to use the CanLearn on-line account manager o a fact sheet for students with dependents that outlines the other federal and provincial income supplements that are available to individuals both while they are in school or working (e. o a Repayment Quick Tips sheet that provides information about the repayment process and repayment assistance tools that are available: http://www.

contracted by governments to assist in loan delivery and repayment and provide information to students at various stages of their loan experience.Summary of Institutional Strategies & Practices for Improving Loan Repayment Introduction: Key Players in the Government Loan System Given the research findings on factors that play a role in defaults. in some cases during repayment. and. practices and tools currently used by Canadian post-secondary institutions intended to impact student government loan repayment rates. The activities and approach of Student Loan Service Providers. it is clear that increasing repayment rates on government student loans should be viewed as a multi-faceted challenge. all of whom can be seen to have a role and responsibility related to preventing defaults and thus maintaining the integrity of the system. also have an impact. (2) early stages of enrolment. and what student rights and responsibilities are. have opportunities to have an impact on student loan defaults. the students themselves have a role to play and choices to make regarding how they approach meeting their student loan debt obligations. There appears to be a number of key dimensions related to defaults. This chapter summarizes selected strategies. and 4) after students leave school. regulations. Institutional Approaches to Improving Loan Repayment: Before Post-secondary • Financial aid advisors have a booth or display at open houses and other prospective student orientation or recruitment events to inform prospective students as early as possible about the cost of post-secondary and 62 . It is important to recognize that these school-based activities are only one part of a much larger picture. Post-secondary institutions. 1. some via an institutional commitment to student success and completion of programs. And of course. policies and processes which determine who gets loans. how students obtain and repay them. as well as a number of central players in the government loan system. (3) in-school and late stages of enrolment. Included are both strategies that are directly intended to improve loan repayment and those that appear to be indirectly impacting repayment. They are described in four categories: (1) before postsecondary. where other key players in the government loan system have equally important roles to play in limiting defaults. dealing directly with students and providing information and assistance as they apply for and receive their loans. The latter include federal and provincial governments who create legislation.

ca/future/cfpe/CFPE.bc. Vancouver Community College) 63 • • • • • • • • • • . targeted information sessions are offered to specific groups of students such as those completing preparatory/pre-entry programs (BC Institute of Technology) Spring financial assistance workshops are delivered to regional high schools. (BC Institute of Technology. Student Success 1100 will be offered on a co-credit basis to high school students. plus information on government and institutional student assistance. (Vancouver Community College) Special. to allow students to plan their studies and timetables early and thereby commit to a full program of study. (University of Northern B. Douglas College. available at http://www.ca website for financial planning and to review repayment scenarios.htm was developed to decrease student reliance on loans and increase financial assistance awareness.bc. (University College of the Fraser Valley). (Douglas College) A new evening information session ‘College 101’ for parents and students (of all ages) includes an overview of admissions requirements and processes.financial assistance options. (Vancouver Community College) The ‘Comprehensive Financial Planning Workbook’. The timeline for provision of information on the college offerings and timetables has been moved up. (Thompson Rivers University).C. Okanagan College.bcsap.) Financial assistance information is provided to prospective students by University/Community Liaison staff during visits to high schools.. (Okanagan College) Presentations on ‘Financing Your Education’ are given for high school students and parents. Students are encouraged to use the www. Okanagan College) • Information on topics such as loan repayment and interest relief is distributed at events such at the College Information Night and New Student Orientation. (BC Institute of Technology. (Langara College) A financial aid & awards publication summarizing available government and institutions student assistance is circulated to prospective students.ucfv. (College of the Rockies) As of 2006/07.

Ontario) • • • 2. Douglas College) Expensive tuition means that students do careful planning before they attend. Student Success workshops or courses are offered by a Student Service or educational departments. Langara College. with instructions on how to apply for government student loans and relevant financial aid at the university. Students are referred to the financial planning tools at the federal government’s CanLearn website. (Brock University. (British Columbia Institute of Technology. many having a financial aid component (B. Institutional Approaches to Improving Loan Repayment: Early Stages of Enrolment • The university has a Retention Committee that designs and coordinates retention initiatives. (BC Institute of Technology. University College of the Fraser Valley) Student Success 1100 at Douglas College carries 3 college credits. Okanagan College’s Counselling Department • • • 64 . applicants are e-mailed the name and e-mail address of their financial aid officer. Ontario) The Registrar and Coordinator of Student Funding and Awards meet with the chairpersons of programs that show high default rates to discuss strategies for informing students about their loan responsibilities. (Trinity Western University) In order to establish a relationship with the student aid office prior to admission. (Red Deer College. (Brock University.• • Has developed a brochure ‘How to pay for college and not break the bank’ (Douglas College) Comprehensive information on all types of government and institutional student assistance is provided on the financial aid department website. with membership including the Director of Awards and Financial Aid. College of the Rockies has a plan to offer Essential Skills for College Success ECS 100. Douglas College). to ensure they are aware of assistance and resources available to them when in school. Institute of Technology. Alberta) A handbook describing available student services is circulated to new students.C. (Camosun College) Queens University has a similar publication ‘Financing Your Queen’s Education’ sent to students with their offer of admission.

(University of Ottawa) Financial aid & awards presentations are part of Orientation. Douglas College. University College of the Fraser Valley).is planning to establish a student success program at the beginning of each term beginning with the 06/07 year.. Acadia University) Copies of the Murray Baker’s book ‘the Debt Free Graduate’ are given out at student orientation and/or student success workshops/courses (College of the Rockies. (Vancouver Community College) An on-line student orientation has been added to the college website (Douglas College). Go’ Student Success courses are offered. (University of B. (Algonquin College. Set. while the financial aid and awards office presents workshops at orientation. (University of Northern B.C. and for parents. University 101 is mandatory for all students at Trinity Western University. plus Student Success and Student Leadership programs are offered by the university. Okanagan College. There is a plan to resume the practice of having financial aid staff visit individual classes during the first Orientation weeks of classes in September. University of Victoria) Orientation programs are offered for both new and transfer students. including University 101. and a student mentoring centre. (Langara College.) Financial aid presents information sessions to Business classes as part of their Student Success course. encourages students to engage with each other and their professors to build a sense 65 • • • • • • • • • • . writing help and resources. First year orientation includes student success initiatives. (Vancouver Community College) • ‘Imagine UBC’.C. to provide information on student loans and financial assistance.The University of Victoria distributes copies at all parent and student orientation sessions. Non-credit ‘Ready. study skills counselling. Okanagan College also distributes the recent version of the CanLean booklet. (University of Victoria) A financial literacy program is planned. (University of Victoria) Student awards and financial aid presentations are offered throughout the year at the Student Transitions Centre on campus. Ottawa) The university has several programs to help students succeed in their studies and complete their academic goals.

(Douglas College) Student-use computers are available in the reception area to allow students to obtain web-based financial aid information and apply for government aid on-line.of community. (BC Institute of Technology. and have a good chance for success) are admitted. and includes presentations by all student support providers on campus. although noting a drop in enrolment lately). (College of the Rockies. one that allows students to monitor their own progress. to provide information on all types of student aid and loan repayment. A degree audit program is planned for implementation. during which sessions are held on financing a Queen’s education. etc. (Algonquin College. Douglas College introduced a new English requirement in the fall 2004. Douglas College) The financial aid office sets up an information kiosk twice a year with other Student Services. money management. Ontario) • • • • • • • • • 66 . handing out brochures about government student assistance and loan repayment. The class is taken on a campus tour. Justice Institute of B. and their retention into second year and beyond. Ottawa) The awards office participates with the student government in a ‘Financial Aid Awareness’ week. Douglas College) Educational and admissions polices ensure that only qualified students (those who are sufficiently prepared. (Douglas College. and for intervention by student services. (BC Institute of Technology.C. A student services day/open house is held every fall to introduce students to available services. establishing a good rapport that will encourage the students to go to financial aid for assistance (Royal Roads University) An Office of New Students will be established in September 2006 to facilitate the transition of new students to the college. such that for each program intake. and just before government loan document pickup. (Queens University) The financial aid administrator is on the staff of the University Life office. credit. (Okanagan College) • Financial aid group sessions are offered in the summer. he/she visits the classes and introduces their role.). (Brock University. the student aid office has ‘mandatory’ information sessions for first-time borrowers which provide targeted information on their loans and begin to develop financial literacy regarding budgeting. (College of the Rockies) During orientation.

those with past. and are monitored closely to ensure they receive the support they need to succeed. the consequences of default. Ontario). Ontario • 67 . Financial Aid and Special Needs.g. that when completed. The package also explains the consequences of failing to meet these obligations. Institutional Approaches to Improving Loan Repayment: In-school and Late Stages of Enrolment • Up-to-date. allows the student to be issued a gold card which allows the student into a fast-track line to pick up their loan documents on the first day of term. Ontario) • • • 3. and a reminder to contact the financial aid office if there is any change in the student’s personal circumstances such as course load reduction). They are allowed to register in 60% of a full course load. (Laurentian University. are reminded about maintaining interest-free status. Ontario) An ‘Introduction to University’ program is offered for students who don’t quite meet the entrance requirements.• Confirmation of Enrolment signing of loan documents is done in mandatory group sessions during which emphasis is placed on repaying Ontario student loans. (Canadore College. (Durham College. (British Columbia Institute of Technology) A regular e-mail communication strategy is in place to inform government assistance applicants of deadlines and other issues regarding their loan (e.g. The Financial Aid section includes an on-line budget exercise. detailed bulletin boards on government and other types of student assistance are used to encourage students to investigate all assistance options. Students are given advice on creating a budget and a cardboard folder to be used to store all documents and correspondence regarding their loans. Ontario) At loan pickup time each year. if a portion of the loan will be directed to tuition fees. (Sheridan Institute of Technology & Advanced Learning. must take non-credit courses in areas such as study skills.) Brock University. not current loans. The college’s Campus Life department coordinates four ‘Beat the Rush’ sessions each summer to provide new and returning students information on services such as the Registrar’s Office. repayment options and programs for students unemployed at repayment time. every loan recipient is given a 3-page information package on government assistance and institutional directions (e.

(Okanagan College) Financial Peer Assistants offer one-on-one or group assistance on budgeting. (University of New Brunswick) 68 • • • • • • • • • • • . interactive way to provide information. they should contact the Student Awards Office. Math and Science on a drop-in basis.• Group information sessions on student loans and other forms of assistance are given to faculty and staff.C. McMaster University. (University of B. to include information on a student’s responsibilities. (Okanagan College) Teaching Assistants run Accounting Study Halls for domestic and international students. plus contact information for the financial aid office. (BC Institute of Technology. (Queens University.. (Brock University.ca Budgeting 101 Workshops are offered to first year students to increase awareness of all financial options. Ontario) Communication with students through school intranet e-mail messages. (BC Institute of Technology) A plain language brochure is planned to be sent to the student after they receive their loan. Institute of Technology) Attendance policies are in place for vocational programs. Douglas College) Students are informed of the implications of dropping courses through the university intranet e-mail system and at the time of loan pickup. targeted to announce important developments such as award and bursary deadlines. with a budgeting game coming soon. (College of the Rockies) Learning Centres located at all campuses provide students with assistance in English. money management and credit. B.mcmaster. working with Residence Life staff and Health Services. Ontario) website http://sfas. (McMaster University. (North Island College) The financial aid website includes an interactive ‘Budget Builder’. (Queens University) Has used the back of washroom doors to communicate award deadlines to a captive audience. Ontario) Academic Advisors remind students that if they drop a course and are loan borrowers. Comedy skits are also used with first year students to provide a fun.C. maintaining the minimum course load.

(University of Northern B. they are counselled re their loan responsibilities and provided a copy of the Ontario Student Assistance Program brochure.• Reports are system-generated on a regular (e. Students are then contacted to ensure they know the implications of withdrawal. with some students re-enrolling in a full-course load (College of the Rockies. (Capilano College) The course drop/add form advises students to consult with the financial aid office if they are receiving student loan funding and are dropping classes. to inform them of the implications for their student assistance. Ottawa) Students identified as having dropped below a full-course load (60%. the pop-up advises them to contact the financial aid office. (Capilano College. University of Victoria) In some situations.C. Alberta) • • • • • • • 69 . Douglas College. The students can be advised of split enrolment and/or appeal policies and procedures to keep their loan in good standing. Malaspina University College. (University of Toronto) Plans are being made to develop a pop-up box such that when a student goes to withdraw on-line. in order to ensure students are aware of implications of withdrawal and the detail of loan repayment. Emily Carr Institute. or have dropped below a full-course load for medical reasons. Students withdrawing on-line are sent a repayment information sheet. or 40% for students with permanent disabilities) are often discovered to be concurrently enrolled at the university and another institution. Interest Relief. (University of Victoria) An information sheet is mailed to students who have withdrawn or reduced their course load to make them aware of loan repayment. Canadian University College. Vancouver Community College) When students withdrawing in person are referred by the Registrar’s Office. C. Langara College. Institute of Indigenous Government. the financial aid office contacts students who drop their course loads below ‘full-time’.) Government student assistance recipients cannot withdraw from the school without the signature of a financial aid advisor. weekly or bi-weekly) basis from the student records system to identify student withdrawals at as early a stage as possible. (B. Institute of Technology. re-instatement of interest-free status upon a return to classes. They have a form that must be signed by the financial aid office. (Algonquin College.g. Emily Carr Institute. North Island College. and the need to update their addresses. University College of the Fraser Valley.

they refer the students to student support providers on campus. Langara College. obligates the college to offer remedial • • • • • • • 70 .C.) A new success program has been implemented that allows a student. These students receive an e-mail and letter from financial aid. and follow-ups done with faculty re attendance problems.• • The financial aid office talks to all students who withdraw. to meet with a counsellor to develop a plan for success. but they are not required to see a financial aid advisor as part of the withdrawal process. (North Island College) Due to the close connection with Student Advising and Student Records. which when signed by the student and the counsellor. failing courses etc.C. by submitting an appeal. which will result in greater completion and thus decreased default rates. the financial aid office is provided a list of students required to withdraw from the university. (University College of the Fraser Valley) The Registrar’s Office notifies Deans prior to the de-registration of students for non-payment of fees. Some withdrawing students are given information through one-on-one advising on loan repayment and other assistance programs. (Simon Fraser University) Borrowers who cease to maintain the appropriate course load required for government assistance are sent a letter informing them of their status and encouraging them to contact the National Student Loan Service Centre. Vancouver Community College) Retention issues have become an area of interest for faculty and administration. in the first semester of having been placed on Academic Probation. Institute of Indigenous Government. The student may be referred to counselling or other services as a condition of granting the appeal. advising them of their responsibilities and options. University of Northern B. (Thompson Rivers University) Students can be referred to the financial aid office by instructors who note students are not attending class. (Emily Carr Institute. The student is then contacted to be reminded of the requirement to attend their classes and their loan repayment responsibilities. The Deans speak to the students and if they uncover underlying personal or financial issues for not paying tuition. (University of Northern B. (Okanagan College) Students placed on academic probation have the option of returning earlier than the normal ‘one year out’. (Queens University) Student withdrawals are tracked by the financial aid office.

All students flagged with this status are checked to ensure they have fulfilled the academic requirements to retain their student loan eligibility. particularly helping high need students pay for basic educational and living expenses. with residence dons encouraged to contact the department to arrange these sessions. (Selkirk College) Institutional bursaries have been developed to assist the neediest students cover some of their need unmet by the government student loan program. (Capilano College). (Douglas College). students in specific programs will not be allowed to apply for B.assistance where necessary. (University College of the Fraser Valley) Bursary. A one-onone interview is initiated to ensure the student is aware that a program withdrawal or reduction in course load (below 60%) will put the student into loan repayment status in six months. (University of Victoria) Students are required to complete personal learning plans and meet with academic advisors to clarify their objectives (Camosun College) The Student Union Society has developed a close relationship with financial aid through the emergency funds they raise to assist students in • • • • • • • • • 71 .C. spring and summer terms. and in some cases Emergency Bursaries are made available to retain students in financial crises: (BC Institute of Technology. (Langara College) • The financial aid office communicates with all students placed under academic progression warning status to ensure they are aware of the requirements to continue their eligibility for student loan funding. Ontario) At least two awards officers are available each business day to conduct ‘financial advising’ sessions. Camosun College. Douglas College. work study and emergency loan programs are available to assist in the retention of students at the margins. (Sheridan Institute of Technology & Advanced Learning. (Queens University) In order to limit overawards (and prevent potential defaults as a result of high debt). Okanagan College) Safeway gift certificates are used in emergency to help students with food costs. Scholarships and bursaries assist in supporting student success. Student Assistance covering the fall. Emergency loans. The student can thus return to studies after only one semester out.

Vancouver City College) The financial aid office refers students they consider ‘at risk’ of withdrawing and/or failing to other student support services to assist them stay in school.C. (University of Northern B. they are referred to take Math or English upgrading either concurrently or before resuming post-secondary studies. (Simon Fraser University) • • • • • • • • 72 .C. Douglas College.) Peer tutors. and/or plan to return to school after time out. (University College of the Fraser Valley) An effective system of inter-departmental referrals is in place among student service departments such as Counselling and Disability Services to ensure students receive support to address their problems. (Laurentian University. Ontario) Special programs are run for students on academic probation. University of Victoria) In some cases when students have been identified as ‘at risk’. (Justice Institute of B. supervised through the College’s Student Access and Support Department. creating a sense of community and a commitment to program completion. (Camosun College. (Vancouver Community College) Small class sizes and low instructor/student ratios allow ‘at risk’ students to be easily identified and monitored. Okanagan College. Work study positions connect students to the college and faculty. Financial aid works with students who need to ‘insert’ back into advanced levels of a program to complete their credential. (University College of the Fraser Valley) • The college work study program provides on-campus employment with flexible hours to fit around classes and an opportunity to have experience related to a student’s field of interest. (Justice Institute of B. as well as for those required to withdraw from the university. (Selkirk College) A mentoring and support program offered to students who experience academic difficulties in their first year has proven to be very effective in keeping students in post-secondary.C. withdraw from studies with medical approval..crisis who would otherwise be unable to complete their studies. North Island College. are hired under the work study program to help students who are struggling with their studies. University College of the Fraser Valley.) Eight remedial/reading and review days are adjacent to critical exam points to reduce the withdrawal rate.

Intramurals and the Leadership Institute have been successful in bringing students together and keeping them to program completion. An online exit counselling process is planned for Canadian students. The expectations for loan repayment and the consequences of default are communicated to students about to graduate via e-mail and/or the financial aid department website. (University of Toronto) One-on-one interviews are provided at a student’s request. (Okanagan College) A plain language brochure will be sent at the end of the student’s last funded semester or when they withdraw. customizing the information for Canadian students. to explain the repayment process and the importance of keeping a student loan in good standing. usually when they are about to graduate. (North Island College) The financial aid office visits each loan-eligible program that is nearing completion. Contact information for the financial aid office and lenders is included (Royal Roads University). (Okanagan College) Students are helped to reinstate previously defaulted loans to put them back into good standing so they can access debt management tools and additional funding in order to complete their studies. (Trinity Western University) • • • • • • • • • 73 . loan repayment and debt management tools.S. process that already exists. organizations. (Simon Fraser University) E-mail reminders are sent to students about keeping their previous student loans interest-free if they are not continuing to borrow. (University College of the Fraser Valley) The university’s Student Life department has an extensive retention program that involves financial aid. e. (Simon Fraser University) The financial aid office uses loan repayment materials available from U.• There is general awareness-building for support services that increases retention and student success. to discuss their accumulated debt load. Activities such as Orientation.g. to advise them of consolidation and options available it they can’t pay. (Trinity Western University) Student Life activities have increased to encourage engagement with other students and the school. all services offered by Student Services and the faculties as well as services offered to students by paraprofessionals through peer educators and student learning commons. using a U.S.

Ontario. (University of B. are sent to those students who do not attend. (Laurentian University. or targeted to those who are graduating. Ontario.• Presented by the financial aid office in conjunction with the National Student Loan Service Centre. (Red Deer College. Algonquin College. 74 . Alberta) Student awards and financial aid is included in the Grad Year Orientation program to provide students with information about loan repayment options prior to their departure from the university. University of Toronto) Durham College.C. University of Ottawa. and consolidation information is published in the bi-weekly student newspaper in March. Ontario. Ontario. McMaster University. Individual appointments are given to students who require more information. The financial aid office receives calls in the fall from grads asking ‘what was it you told us last spring?’ (Canadian University College. They provide information on how to handle their student loans after graduation and options if they are not able to repay. with a table set up in a visible area of the college. with direct e-mail sent to graduating students inviting them to the seminar. Alberta) All graduating seniors are personally contacted prior to April commencement with information regarding ‘what happens to loans now’. Debt Reduction in Repayment. as well as provincial resources. a one-page letter that includes contact numbers for the National Student Loan Centre. with information on Interest Relief. Institutional Approaches to improve Loan Repayment: After Students Leave School. (University of Victoria) Loan repayment information is sent to every student who withdraws and to everyone who applies to graduate. Ottawa: Brock University. Handouts. Loan repayment seminars are offered two or three times per year. uses door prizes to encourage attendance. workshops are offered to students either generally. (Red Deer College. Ontario) • • • • • • 4. Sheridan Institute of Technology & Advanced Learning. (University of New Brunswick) A National Student Loan Service Centre representative visits the campus in March each year to talk to students about consolidation of their loan. Alberta) An information sheet with details about loan consolidation is given to students along with their graduation credential if they have had government student funding. Included is a brochure on options such as Interest Relief.

Ontario) As indicated in the College and Institute Student Outcomes Survey. which should result in a direct correlation with the graduates’ ability to repay their student loans. (Brock University.) • • • • 75 . (Okanagan College) Targeted e-mail is sent to recent graduates. (Justice Institute of B. Institute graduates show strong employment and earning outcomes. (Ontario College of Art & Design.• • Students have a strong relationship with frontline staff and often return to discuss Interest Relief options. providing basic information about loan repayment and inviting them to come back to campus for oneon-one advising or to attend information sessions. (Okanagan College) The college Employment Services Office helps students with resumes and finding jobs. asking about the issues driving their decision to leave. (Okanagan College) Students are assisted in navigating repayment processes and debt management tools which they receive notice of student loan consolidation. In the future the survey is being expanded to students who do not return.C. Toronto) All students who leave the university are requested to complete an Exit Survey.

(d) completion rates and the reasons for non-completion. the AUCC indicated it feels strongly that. Available at: http://www. regarding a student’s last known address. In response to the proposed “Roles and Responsibilities of All Stakeholders in Reducing Student Loan Defaults”. AUCC indicated that ‘type of institution attended’ should be added to the list of factors that may directly or indirectly influence student defaults. this should trigger an analysis to identify the causes of the default level and to identify remedial actions. and (i) where an educational institution makes specific marketing claims about job placement rates to recruit students. designation of government-chartered. 76 . (b) whether borrowers actually consolidated their loans prior to being placed into default. (h) whether the educational institution is meeting its obligations to provide information to students regarding student assistance. Factors are proposed to be taken into account when identifying the causes of high default levels at specific institutions: (a) the economic climate. to lenders and to governments.Appendix A: Preventing Government Loan Defaults Summary of Selected References Association of Universities and Colleges of Canada. and that designation of private career colleges for student loan purposes should be based on their complying. not-for-profit universities and colleges should be automatic. (e) whether a private vocational institution has conformed to provincial licensing and regulatory requirements. They suggest that when default levels among the former students of a particular educational institution are well above the level for other institutions. with service available to all students. for student loan purposes. whether it has substantiating information. with rigorous and effectively enforced provincial licensing and regulatory requirements. Submission to Human Resources Development Canada in response to the Consultative Document entitled Designation and Default .ca/publcations/reports/1999/default_09_13_e. (g) whether the educational institution has a student financial assistance office staffed by qualified personnel. September 1999. (f) whether lenders of the bulk of defaulted loans have met their service obligations and have default levels consistent with other lenders. and to government when a student has withdrawn from full-time studies. on an on-going basis. (c) public institutions’ public access mandates to reach out to non-traditional and disadvantaged students.A Consultation Paper. The response also outlined an understanding that designation should be of institutions as a whole and not of individual academic programs.aucc.html In response to the proposed “Core Elements of a Framework for Designation”. Ottawa.

being on Student Financial Aid probation. The inventory includes a section on financial literacy. a tool for campus-wide assessment to understand the student experience inside and outside the classroom. act of deviance). Describes the Noel-Levitz Student Satisfaction Inventory (SSI). being over 25 years old.This study looks at borrowers who defaulted on their student loans from 1993 to 1995. It was found that the threshold of accumulated debt was more effective in explaining student debt response. 39 variables were analyzed. No 3. have a GED. (b) personal. structural/functional perspective. Multiple Realities: Characteristics of Loan Defaulters at a Two-Year Public Institution.org/forms/financial_aid/Financial_Literacy_Symposiu m. and to compare their results to national scores. Patricia. and federal government perspectives (holding institutions accountable for defaults). Vol.Christman. being enrolled in less than two semesters. Available at: http://www. (d) social. 27. sociological (student-institution fit.ppt Outlines risk factors associated with students dropping out of college before completing their program in five categories: (a) academic. Vol.00. The influence of student debt load on college persistence was examined using data from the 1992-93 National Post-secondary Aid Survey. Chris. Gender was found to be unrelated to default behavior while a number of variables were: low ACT scores. Dana. GPA less than 2. James & Somers. Coleman. Spring 2000.usafunds. February 2005. 77 . losing financial aid thru Student Financial Aid suspension. using data from the US Department of Education’s National Student Loan Data System. The researchers found that borrowers in repayment expressed anger at having to assume more debt than students in the decade earlier. pp 16 to 33. Cofer. Marcia & Miller. Community College Review. (e) institutional. Provides an analysis of previous research related to four perspectives: economic (human capital theory. The SSI allows institutions to capture both a satisfaction score and an importance score so they can define the strengths and the challenges at their institution. (c) life issues. Fall 1999. An Analytical Approach to Understanding Student Debt Load Response. being Native American or African American. Presented at the USA Funds Symposium: It Takes A Campus to Retain a Student. coming from a low income family. pp 25 to 44. 29. No 4. Suggests using student peer counsellors in a campus financial literacy program. Solving the Retention Puzzle: The Link Between Retention and Financial Literacy. NASFAA Journal of Student Financial Aid. ability-to-pay theory). failing any classes. plus a model of student persistence that includes either accumulated debt or threshold of accumulated debt. psychological (attitude formation).

Chris. The Framework indicates that risk to student assistance programs would be assessed through a measurement of three types of 78 . (c) the decision (arrived at sometime after the commencement of study) to transfer to another institution. The report indicates that of every 100 students who start undergraduate studies.pdf Initially produced by the Intergovernmental Committee on Student Financial Assistance. and that designated institutions are also expected to focus on student success. or commencement of employment. or unavailability of. Of the total early leavers. (b) accountability and informed choice. and (f) dissatisfaction with.991 early leavers from the University of BC. Available at: www. Council of Ministers of Education Canada. (b) inadequacy of financial resources to continue study.bc.tupc. (e) the search for. Designation Policy Framework. The Framework was based on four principles: (a) taxpayer protection. (c) consumer protection.cmec. the academic program in which the student was interested. summer 1998 or winter 1998/99 and who had not since re-registered in the winter 1999/2000 as of November 1. The University President’s Council of British Columbia. Among the common elements required to be in the provincial designation policies are that institutions provide students with adequate consumer protection and information on which to make an informed choice about their post-secondary education. that is those whose attrition was unplanned and permanent.ca/postsec/DesignationPolicyFramework. including but not limited to. over half attend another educational institutional within 24 months of their departure. and (d) complementarity to other post-secondary education policies. and ensure students improve their overall employability. including illness and family obligations. January 2001. November 2004.en. 59% of the early leavers were ‘true leavers”. 1999. what they thought of their university experience and what their educational and employment outcomes were. (d) changes in personal/life circumstances. and was developed to be used by provinces and territories to establish designation policies and criteria for educational institutions operating within their jurisdiction. between 30 and 50 will leave prior to degree completion.Conway. Available at: http://www. the University of Victoria and the University of Northern BC why they attended university and why they left. Simon Fraser University. improve ways to retain students. the student being required to withdraw. The 2000 British Columbia Universities Early Leavers Survey. Early leavers were defined as those non-graduating students who last registered at one of the four institutions 1997/98.ca/student_outcomes/publications/early_leavers The BC Universities Early Leavers Survey asked 5. the Pan-Canadian Designation Policy Framework was approved by CMEC in April 2003. Reasons given by ‘true leavers’ for departing university: (a) poor academic performance.

[Plus an article of the same title in the Journal of Higher Education. No. and (c) student performance (e. Who Defaults on Student Loans? Findings from the National Post-secondary Student Aid Study. March 1994. 1. Borrowers from low-income households and minority groups. Thomas. (b) clear admission criteria. loan obligation enforcement. Outlines a Default Prevention Plan built on borrower education.g.] 79 . (b) socio-economic characteristics. 13. 68. (d) unmanageable non-education debt. Mark. Economics of Education Review. No. (c) withdrawals from school. personal and financial management. alliance building. (g) unemployment and low income relative to debt obligations. (f) personal and financial management. Dynarski. Presented at the Annual Meeting of the Association for the Study of Higher Education. high school dropouts. pp. and compared defaulters and nondefaulters along various dimensions. administrative compliance. 1996. (c) program completion. student retention and employment initiatives/services. 2005 Describes factors causing default as (a) students poorly informed of financial aid information. plus several requirements. repayment and default data).g. employment and withdrawal data). (e) family status. Predicting Student Loan Defaults. 3. Federal/Provincial/Territorial Working Group on Designation. and (c) educational attainment. Factors supporting repayment are listed to include (a) students’ good understanding of loan obligations and terms. and students attending proprietary schools and two-year colleges were found to be at higher risk of default. to be at the option of the province/territory. (b) students’ poor understanding of loan obligations and terms. Based on National Post-secondary Student Aid data. Flint. this study analyzed the characteristics of student loan borrowers. leveraging technology. including (a) requiring institutions to have a withdrawal/exit management plan to assist students.68. and (b) requiring institutions to meet specific requirements for student retention prior to designation. (e) students well prepared for personal and financial management. 56 . (d) employment and income adequate to meet debt obligations. Vol. Best Practices Guidelines: “School Tools” for Improving Repayment Performance.354. May-June 1997. (b) institution performance (e.g. student support services). Among the Framework’s “Common Elements” described in Attachment A is reference to the requirement for institutions to provide student financial assistance information and counselling. Vol. pp 322 . including (a) demographic profiles. completion. Memphis.performance: (a) portfolio performance (e.

congruence between students’ undergraduate major and latest job held. Describes the common characteristics of delinquent and defaulted students: having withdrawn from school and didn’t complete their studies. Includes an extensive bibliography. parental income levels. with the exception of borrowers’ own disposable incomes during repayment. looking at over 1. did not get the benefit of their full 6month grace period as a result of late enrolment notification. Gary. Outlines default prevention initiatives of the Iowa College Student Aid Commission. school choice. Fitzgibbon.) Includes a table on national student loan default rates. showing a high in 1992 of 22% to around 5% by 2003. sociological and psychological models. the State University of New Jersey. Variables included: student background. Steven. as well as Rutgers. (c) repayment (from point of leaving grace through successful repayment or discharge. there were no differences in repayment behavior related to whether counselling was done before.Refers to previous default research based on economic. Craig. Hansen. Individual student characteristics found to relate to default behavior included: gender. Kristie. age. Describes the US Department of Education’s default processes. by either schools or lenders. 2003. (d) default (from 270 days of delinquency or until loan is cured. school choice. and post-college marital status. academic and other characteristics. during. race. Loan Repayment. student academic achievement.ed. Available at http://www. Presented at the US Department of Education Federal Student Assistance Electronic Access Conference. types of financial aid received in college. students’ status indices such as academic majors. Harrast. marital status and number of dependents.) Findings suggest that economic variables show no significant association with default (i. the latter including the Rutgers Default Prevention Listserve.000 borrowers from 510 institutions. cumulative GPA. San Diego. and having incorrect telephone numbers.e. or after enrolment.ifap. & Hopkins. NASFAA Journal of 80 . with these including parental educational and occupational levels.gov/presentations/03GeneralSessLoanRepayment. institutional status indices for selectivity. disposable income and congruence between major and latest job held. the degree of post-college support). number of friends/relatives willing to assist with loan payments. Sociological variables also showed no relation to defaults.html Outlines the life cycle of a government loan. This study analyses data from the 1987 National Postsecondary Student Aid Study. (b) in grace (from end of school for six months. It was found that controlling for student background. number of loans and totals borrowed. with four stages: (a) in school (from loan origination until graduation or drop below half time. loan counselling and post-college. Jo-Ann. point-of-survey variables (the last category including disposable income. Tim. Undergraduate Borrowing: A Study of Debtor Students and Their Ability to Retire Undergraduate Loans. degree levels.

and (d) ensuring students understand their rights and responsibilities. Hildebrand.PDF A study at Southeastern University that found a number of factors related to the student loan debts of recent graduates: college major.org/Annualpubs/Journal/Vol34n1/Harrast. The author concludes that minimizing the time to graduation can be accomplished with academic preparation and planning and thus comments that students who need additional preparation before undertaking a university degree program may wish to do so at a lower-cost institution. grade point average. 2006. and connecting the student to student loan servicer via a three-way call. before the borrower leave school. Refers to the U.S. Sherry & Walsh. The study suggests that the most controllable factor influencing student loan debt is the number of semesters to graduation. Shari & Deike. 1.Student Financial Aid. and after the borrower is gone. Gender was found to be unrelated to student loan balances. Proposed that. Stresses the importance of schools identifying their potential defaulters. 56% had incorrect phone numbers. Direct Loan defaulters: (a) 84% didn’t receive full grace period due to late enrolment notification. No. 2004. March 15. Default Prevention Training for Financial Aid Professionals. Strategies while the borrower is enrolled include: (a) entrance counselling. age and the number of semesters required to complete a degree. ethnicity. The ‘before the borrower leaves school’ component described as including exit counselling and ensuring that borrower contact information is correct. 34. Howell. reaching out to them (using a ‘soft touch’). Available at: http://www. Department of Education’s Sample Default Prevention Plan and the many components of Mapping Your Future. Do Entrance and Exit Counseling Make a Difference in Title IV Default Rates? Presented at the US Department of 81 . Vol.nasfaa. It was concluded that a large percentage of recent graduates have student loans above lenderrecommended levels. Suggested that schools can take advantage of the opportunities to minimize delinquent borrowers while the borrower is enrolled. (b) borrower education. including on-line counselling. raising a concern that the benefits of higher education are being slowly eroded by the increasing debt burdens of graduates. Randy. These include identifying the severely delinquent borrowers. Department of Education and Mapping Your Future. After the borrower has left the school. late stage delinquency assistance techniques are suggested to rescue borrowers from default. Web Conference sponsored by the U. the student loan repayment calculator. budget calculator and Debt/salary wizard. while the borrower is enrolled.S. (c) development of financial literacy. Described statistics on the characteristics of U. the emphasis should be placed on initiatives that support student success. (b) 71% withdrew without completing studies.S. 83% were not successfully contacted by phone during the 360-day collection effort during delinquency. Mark.

(b) an improved process for granting eligibility and certification of schools and programs. the US government implemented a number of reforms over the past decade to address high default rates: (a) stronger oversight of at-risk schools. The conclusions section indicates that borrowers from colleges. not as a result of the nature of their training. to study the impact of entrance and exit counselling on student government loan defaults.ifap. in addition to using default rates to de-designate schools.ca/pls/edd/CSL_brf. developed as part of PSU’s participation in the Experimental Sites Initiative. especially from private colleges. Factors Affecting the Repayment of Student Loans. Available at http://www. Kapsalis. (b) modified exit counselling but no entrance counselling. Spring 2004.1 Designation of Educational lnstitutions. New York. with the nature and quality of education.gov/presentations/04Session12. Human Resources & Skills Development Canada.gc. A discussion of default reasons suggests that individuals default for individual reasons. In the full text of the report. suggesting that entrance and exit counselling have no effect on loan defaults. income tax refunds applied to loan defaults and garnishing of defaulter wages. 82 . It is pointed out that. the students were tracked for seven years from 1996 to 2003. c) a requirement for financial counselling to student borrowers when they first take out loans. Evaluation of the Canada Student Loans Program. (d) borrower loan deferments were simplified. by limiting the amount of time they must devote to work while at school. and (c) no counselling. reference is made to default rates having limited utility in the designation process. October 1997. Constantine.Education Federal Student Aid Conference. as evaluated by the provinces. the best foundation for designating post-secondary institutions for Canada Student Loan purposes. Using an experimental design involving separate student cohorts given (a) government regulatory entrance and exit counselling. Available at: http://www11.ed. with the possibility that institutional rates may be high because borrowers from the institution share common characteristics. Evidence is also referred to that indicates student loan default rates are significantly higher for borrowers of some financial institutions than for others. Section 6. (e) more repayment options were added.hrdcdrhc. Statistics Canada/Human Resources and Social Development Canada.shtml The summary of key findings refers to evidence suggesting that the CSLP assists students to complete their studies successfully.html Provides an overview of research carried out at Pennsylvania State University. and when they leave school. At no point in the research were the differences in default rates among the student cohorts found to be statistically significant. and (f) stiffer penalties were imposed on defaulters (e.g. are more likely to default than university students.

the current status of the loan and the annual income of the borrower.gov/presentatioins/04NASFAADefaultAversion. in repayment or defaulted (i. Available at http://www. debt size and income in the three years following consolidation.ifap. Data tables indicate that the average default rate within the first three years after consolidation for students from universities (graduate programs) was 12%. Found that 39% of borrowers had repaid their loans in full. from that date to nine years after consolidation September 2003. Refers to the Department of Education’s Sample Default Management Plan issued June 2001. Defines Cohort Default Rate (CDR) as the percentage of borrowers entering repayment on loans in a fiscal year and subsequently defaulting (or meeting other conditions) in that same fiscal year or the next fiscal year. Health Sciences and Law) were in the range of 5% to 8%.March 2006. Current loan status was categorized as one of: paid in full.pdf Analyzes the experience of approximately 128. is strongly related to the type of education (type of degree. with approximately 9% of the total outstanding principal balance is in default. Data is also given that appears to indicate field of study wasn’t a significant factor in default rates for college and private institution students.000 and higher default rates than other borrowers). Available at http://www. who had debt over $20. through the life of the loan. For example.e. in arrears for three months or longer). field of study and type of institution). July 2004. Minneapolis. as well as the probability of loan repayment. colleges 30% and private institutions 43%. universities (undergraduate programs) 20%. Mark. average default rates for Arts students was 28%. 83 . 30% were still making payments and 31% were in default. Ben & Walsh. (b) the ability of students to repay their loans depends primarily on their income after graduation.ed. Conclusions included: (a) debt size is a factor only for very large student debt (the situation of 2% of borrowers. Presented at the National Association of Student Financial Aid Administrators Conference. The report examined the relationship among default. but did appear to be a factor for university undergraduate students. while those for professional program students (Medicine/Dentistry.000 students who consolidated their Canada Student Loans in the 1994/95 loan year. suggesting that repayment problems tend to occur soon after consolidation. Key variables reviewed included: the total amount of the loan at consolidation (indebtedness). 90% of those who defaulted (28% of the borrowers) did so within three years of consolidation.statcan. Points out that the US government has $319 billion in outstanding loans. Default Aversion: Managing the Risk of Default. Leborys. Also comments that other key determinants of borrowers’ ability to pay include employment opportunities for new labour market entrants and general income trends.html Describes ‘risk management’ as the continuous management of reducing exposure to loss from non-performing loans. rather than the debt they accumulated. (c) income after graduation.ca/english/research/81-595MIE/81-595-MIE2006039.

with the rate for the least able (quartile 1) being quite close. Students in the middle 3rd quartile had the lowest default rate. found that default is positively associated with lack of awareness of deferment provisions. It also outlines those parts of the website that assist with default prevention. It was found that default rates for men and women are nearly identical. Presented at the US Department of Education Electronic Access Conference. selecting a school. but those differences disappear when controlling for debt and earnings. Lochner.796 undergraduate borrowers who graduated from college 1992-93 and didn’t go on to graduate school. while rates increase with amount of educational debt. with default rates highest for the most able (quartile 4). outreach to dropouts and counselling potential dropouts earlier in the process. with data from the Baccalaureate and Beyond Surveys.ed. (d) identify and contact delinquent borrowers. 29 . Education and Default Incentives with Government Student Loan Programs. NASFAA Journal of Student Financial Aid. . Includes a section describing the process and advantages of schools providing Late Stage Delinquency Assistance and suggests a possible Early Stage Delinquency Prevention approach for schools that includes timely reporting of student separations.ifap. A preliminary report on research analyzing default patterns of 2. it was found that the relationship between SAT/ACT test scores and default was U-shaped. & Webster. Lein. Studying small samples of state technical institute students. Surprising. Sources of information about loans were shown to influence the likelihood of default. the topics it covers for students (Planning a career. Meteor and Mapping Your Future: Informing Students and Default Aversion Assistance. Orlando. Spring 1993.gov/presentations/04EACSession28. including the Online Student Loan Counselling (OSLC). Lombardi. (b) pursue those who leave without notice. L. 23 (1). as well as students from a number of proprietary schools. J. Student Loan Defaulters Compared with Repayers: A Texas Case Study. Vol. Lance & Monge-Marango. 84 . Richards.html The section on Mapping Your Future describes the website. Preliminary paper. Available at: http://www. Default behavior varies across undergraduate majors. 2004. December 2003. (c) communicate during their grace period (letting student keep their e-mail for two years).Proposes schools form a Default Prevention Team. Anthony & Marsh. R. pp. The researchers concluded that the effects of loan counselling were both large and beneficial. Outlines four aspects of borrower contact for schools: (a) communicate while student in school.40. Adele. and paying for school) and its intended audiences. Alexander.

Consolidation. personal & family. Concludes that loan repayment is basically a matter of the borrower’s ability and willingness to repay. Texas Guaranteed Student Loan Corporation. perception of debt). 3. income. It includes material on (a) college success variables (graduation. class level. indicating that there appears to be general consensus among investigators that the determinants of student loan default are primarily borrower-based rather than linked to the borrowers’ school of attendance. Begins with a comprehensive review of previous research on loan defaults. No. student employment.352. family background and income. repayment after default). attendance factors. Research in Higher Education. The current study looked at 60. Available at: www. He sees this as hopeful. Monteverde. (c) postcollege variables (unemployment. (d) background characteristics of borrowers (gender. Vol. knowledge of repayment obligation. GPA. the general finding of most researchers today is that success in post-secondary education plays a larger role in predicting who will default than does either the borrower’s background or the type of institution they attend. Kirk. ethnicity.tgslc.Financial Fitness Tools (10 Steps) and four Calculators . and (h) default definition and trends. Budgeting and Debt/Salary Wizard. borrower attitude). He suggests that. continuous enrolment. December 2004.pdf A very comprehensive review of literature that describes research into factors which may play a role in government student loan defaults. pp 331 . While the study identified a statistically significant association of school of attendance with graduates’ default risk.000 students who had loans under a privately guaranteed Law Access Loan program that provides funds to law school students at American Bar Associationaccredited schools. McMillion. (e) debt (level of indebtedness.org/pdf/default_lit_review. whereas much of the early research on student default looked at the association between borrower or institutional characteristics and default behavior. (g) loan servicing factors. students who are successful in their studies tend to have lower default rates that those who aren’t. (f) school-type variables. 41. 2000. academic preparedness. loan repayment factors. Student Loan Default Literature Review. all else being equal. given his conclusion that loan repayment seems to hinge on factors that are at least to some extent under the control of the borrower and/or the school. Robin. number of hours failed). Managing Student Loan Default Risk: Evidence from a Privately Guaranteed Portfolio. age.Repayment. it is suggested that the statistical school effect may be a 85 . exit counselling). The author concludes that. (b) college experience variables (college major. An individual’s credit bureau score was found to be an effective predictor of the probability of default.

and (c) they transferred or qualified for admissions elsewhere. and institutes after completing a relatively small number of courses-between 9 and 23 credits. John (Personal correspondence) Senior Policy Advisor. Warned that this does not mean. 16% said they left for employment and 11 % said their main reason for leaving had to do with finances and affordability. the BC Institute of Technology. student loan post-study income and other administrative data.bcstats.ca/Publications/collegereports/Short_Stay. 27% dropped or withdrew from one course and 86 . Concluded that.result of graduates’ ability to repay their loans. to transfer to another program or institution. Outcomes Working Group. based on a school’s location. determined that graduates will typically have more success in the labour market and higher repayment rates than non-graduates. Short Stay Summary Report. the overall graduation rate for private career colleges may in some case be higher than graduation rates for public institutions. Douglas College. Researched an extensive body of literature and conduced studies on government student loan default using data on repayable debt. in many cases. 2006. For example. Ontario Ministry of Training. reasons for leaving. and further studies. employment outcomes. that repayment rates of graduates will necessarily be high. (b) they changed their mind about their program or job goals. Selkirk College and North Island College. Colleges and Universities. In the context of an individual institution. the 23 % of short stay students said they left early because they had completed their program. its reputation and the labour market in the region. objectives for enrolling. research indicates that student success in the labour market (sufficient income and employment) is the primary determinant of government loan default. however. overwhelmingly. Mortimer. Respondents rated a number of possible reasons for leaving. or completed courses they wanted or needed. pdf The 2003 BC College and Institute Short Stay Pilot Survey collected data on the outcomes of former students who left public colleges. Spring 2003. Available at: http://outcomes. Student Support Branch.gov. Six BC institutions participated in the survey :the University College of the Cariboo . Of the leavers. The survey collected data on these former students' overall satisfaction with their institution. university colleges. Also found that the significance of post-study income can be moderated if borrowers revise the term of their loan or participate in the Interest Relief program during periods of unemployment or low income.bc. When asked for their main reason for leaving. Okanagan University College. yet default rates for students from private career colleges can be higher than graduation rates for students from public career colleges. with the top three factors being (a) they had completed all the credits needed or intended.

Vol. It was concluded that students who are continuously enrolled or who completed their program are far less likely 87 . and “Meteor”. While a number of factors were identified as relating to defaults. Connie & LeBorys. The last component “restoration” refers to getting defaulted borrowers back on track through initiatives such as the Default Rescue Program. Schmidt. Michael.18 %. This describes a model of student loan defaults using a panel data file. retention and restoration. ranging from 25% to 70%. [See above listing. 3.ifap.] The second section “The Guaranty Agency Perspective” by Connie Schmidt outlines how GA’s work in cooperation with schools to reduce default through four strategies of education. Reference is made to the LSDA User’s Guide and the new Department of Education’s LSDA Report which provides a school with contact information on Direct Loan borrowers from their institution that are between 241 and 260 days delinquent on their loan payments. Podgursky. pp. Retention is a schoolbased component described as including the identification of high-risk populations. Mark & Others. November 2004. 2002. Ben. Available at: http://www. dropped or withdrew from two or more. NASFAA Journal of Student Financial Aid. No. the variable with the largest effect on the likelihood of default was continuous enrolment. Borrowers were followed from 1992 to 1999 to determine who defaulted on their loans. The ‘education’ component helps students manage their money and control debt. full-time degree program students entering Missouri two-year and fouryear public post-secondary institutions.html The first section “How Schools Can Help” is an early version of the presentation made by Craig Rorie and John Pierson at the NASFAA 2005 Conference. Student Loan Defaults and Enrolment Persistence. using web and electronic default prevention information and sources such as “Mapping Your Future”.ed. 18% of the early leavers indicated they had failed two or more courses. 32. The ‘communication’ component refers to keeping in touch with students and counselling. communication. 27 to 42. Reducing Delinquency and Default. 46% of the early leaves took some further studies. as well as ACT test data for a large group of first-time. Ehlert. Pierson. LSDA Tips for Success are included and statistics on LSDA rescued borrowers for fourteen schools using it. The third section “Why is LSDA Working?” by Ben LeBorys outlines the advantages of schools providing Late Stage Delinquency Assistance to their former students. counselliing potential ‘early leavers’ and providing additional instructional support. higher education enrolment and performance data. Orlando. Presented at the US Department of Education Federal Student Assistance Electronic Access Conference.gov/presentations/04EACSession08. monitoring Satisfactory Academic Progress (SAP). John. which was created by merging student loan administrative data.

Differences in default rates were identified by major. Outlined a joint study by the Colorado Student Loan Program and the Colorado Commission on Higher Education.gov/presentations/05NASFAADefaultPrevention. Available at http://www. Students who transfer schools and then graduate had a very low risk of withdrawal. Advises F. administrators and student success specialists to support students to complete their programs. Vol. Includes tips to be used by financial aid administrators providing LSDA. representatives from all relevant offices and a student representative.42.ifap. L. GA or DL Servicer loan counselling will more likely respond to financial aid offices following Late Stage Delinquency Assistance strategies.ed. Suggest that students who don’t respond to lender. The potential use of the model is suggested for targeting default prevention resources at students at risk of default.to default than students who drop out during the same period. Ryan. California State University Loan Defaulters’ Characteristics. Those who dropped out. Summer 1993. 29 . Defaults by Degree. Presented at the NASSGAP/NCHELP Financial Aid Research Network Conference. June 2004. Craig & Pierson. John. New York. Aid office staff to work with faculty. Reducing Delinquency and Default: How Schools Can Help. pp. San Francisco. Indicates strategies should be targeted at those who are most likely to default: (a) students who fail to complete their program or leave early. 23 (2). July 2005. Rodgers. Found that loan repayment is positively associated with borrowers’ understanding of loan obligations and knowing their rights and responsibilities under the loan terms. stresses the importance of being able to contact dropouts immediately. Concluded that it was most effective to target default aversion efforts on students who withdraw Rorie. NASFAA Journal of Student Financial Aid. re-enrolled and then dropped out again had lower default rates than students who withdrew and didn’t return. and (b) students who fail to respond to repayment counselling by lenders. including the establishment of a Default Prevention Team composed of a senior school official. 88 . Presented at the National Association of Student Financial Aid Administrators Conference. with the lowest default rates for the sciences and the highest rates for vocational training.html Describes school-based strategies to reduce default rates. guaranty agencies or direct loan servicers. Dan. D. In the case of early leavers. Borrowers who withdrew were found to be almost eight times more likely to default than graduates.

Predictors of Student Commitment at Two-Year and Four-Year Institutions. The predictors of institutional commitment were studied for over 8.org Proposes a retention formula for student success in college: Retention = early identification + (early + intensive + continuous) intervention. Slide shows available at: http://www. 3.org/Annualpubs/Journal/Vol34N3/Seifert.cscsr. Seifert. Linda & Volkwein. A Retention Formula for Student Success. although the positive effects had diminished somewhat over time. was that institutional commitment is a precursor or predictor of student persistence behavior. both prior to and after enrolment and describes approaches to the intensive and continuous intervention parts of the retention formula.000 students at 128 two-year and 23 four-year public institutions.g. No.Seidman. two-year study provided strong evidence that an early intervention program can positively impact the default behavior of student borrowers. Center for the Study of College Student Retention. with the 89 . Charles & Worden. Richmond. Stresses the importance of involvement of faculty and the campus community in a college’s retention efforts. Vol. Lorenz. An underlying principle of the study. financial attitudes and being in receipt of financial aid.PDF Short-term and longitudinal studies were carried out to evaluate the effectiveness of an early intervention program implemented by the Advocate Unit of the New York Higher Education Services Corporation. Astin’s student involvement theory. It was found that the most important student variables influencing such commitment were academic growth and development. Alan. 2004. J. and suggests establishment of a campus Retention Committee. VA. transition and integration. Two Studies Assessing the Effectiveness of Early Intervention on the Default Behavior of Student Loan Borrowers. NASFAA Journal of Student Financial Aid.nasfaa. Fredericks. Strauss.) Results for the short-term. and Witt’s person-environment fit theory. Discusses three models related to student retention: Tinto’s concepts of separation. The longitudinal study supported this conclusion. November 2001. Presented at the Annual Meeting of the Association for the Study of Higher Education. Outlines details of early identification approaches. 2004. The unit received lists of recently withdrawn borrowers and had staff contact each borrower with information on available repayment options and make referrals to external support organizations if appropriate (e. and College Student Retention: A Primer. Department of Labour for job enhancement strategies or notfor-profit credit and debt counselling agencies for debt management and budgeting assistance. Available at: http://www. 34. identified in earlier research.

Includes an annotated bibliography. September 2005. public recognition of successful programs.gov/IFAPWebApp/currentSFAHandbooksYearPag.html 90 .pre-college characteristics of age. Chapter 6 (Providing Consumer Information) includes a Loan Counselling section from page 2-98 to 2-106 that describes the required and suggested elements of entrance and exit counselling US Department of Education. (b) between enrolment and repayment.ifap. (b) establishing incentives to encourage all partners in the loan process (schools. The last chapter summarizes proposals made by symposium participants for improving the student loan programs. 2005/2006 FSA Handbook.gov//eannouncements/0118nhbook1web. Examples of incentives for students include rewarding students who start payments early. including (a) providing flexible government due diligence requirements to allow a new emphasis on ‘profiling’ or ‘targeting’ to focus on borrowers most likely to default. Federal Student Aid. Available at http://ifap. ethnicity and marital status also being significant predictors of commitment. and providing tax incentives for employers so they can offer a pretax payment as a fringe benefit. Federal Student Aid. incentives could include regulatory relief for high-performing schools. either while they are in school or during the grace period.jsp?p1 =2005-2006&p2=c The Federal Student Aid Handbook Volume 2 . Sample Default Prevention and Management Plan.ed. US Department of Education. The sections on best practices during the inschool and payment periods include not only the descriptions of specific practices in current use. but gives a contact person for follow-up purposes. the handbook summarizes trends in student loan defaults and describes best practices throughout the life of student loans: (a) before a student enrolls in college. US Department of Education.School Eligibility and Operations. guaranty agencies. and (c) at the repayment stage. Available at: http://www.ed. students) to maximize repayment. Ensuring Student Loan Repayment: A National Handbook of Best Practices. 2001. and paying an administrative allowance to schools based on their loan volume so they can enhance service during the in-school and repayment periods. For schools.ed. Available at: http://www.ifap. sharing in the savings realized through reduced defaults with partners.pdf Based on the US Department of Education’s first Student Loan Repayment Symposium held in October 2000.gov/dpcletters/GEN0514.

Bruce. The findings suggest that schools can best assist their student borrowers by creating an environment that promotes good academic performance. and tools to promote student and school success and reduce federal student loan defaults. College GPA was found to be a strong predictor of default behavior for whites. as well as a comprehensive list of web resources that describe tools for schools to ensure data accuracy and employ effective loan counselling and default prevention and management techniques. financial literacy for borrowers. are required to implement default prevention and management activities. encourages study in pure and applied scientific disciplines. Volkwein. Boston. Characteristics of Student Loan Defaulters Among Different Racial and Ethnic Groups. as well as those having undergone a change in ownership. degree completion. default prevention communication campus-wide. The current research analyzed data from the 1987 National Post-Secondary Student Aid Study. analyzing defaulted loan data to identify defaulter characteristics. Fredericks & Others. and that three variables. Hispanics and Native Americans. May 1995. Presented at the Annual Forum of the Association for Institutional Research. (b) Late Stages of Enrolment (exit counselling. Schools newly participating in Title IV federal student aid programs. early identification and counselling of students at risk. Volkwein. Includes a summary of previous research on the characteristics of defaulters. May 1994. and ensures degree completion. It provides schools with activities. college and post-college characteristics of individual borrowers. It was found that differences among different racial/ethnic groups are more a matter of degree than kind. comparing default among Whites. Asians. The Relationship of Student Loan Default to Individual and Campus Characteristics. and dedicated default prevention and retention staff. Late Stage Delinquency Assistance (LSDA). New Orleans. (c) After Students Leave School (updating National Student Loan Data Service DER (Date Entered Repayment) report. Early Stage Delinquency Assistance (ESDA). J. Fredericks & Szelest. timely and accurate enrolment reporting. The activities include (a) Early Stages of Enrolment (entrance counselling. Recommendations for enhanced entrance and exit counselling are given. reviewing the school data provided on the Loan Record Detail Report to ensure accuracy of student contact and loan information. not minorities. maintaining contact with former students. techniques. grades earned and the choice of major. J. African Americans. 91 . service to students who withdraw. marital status and dependent children are more important in predicting default than race or ethnic group. rather than the institution attended. Presented at the Annual Forum of the Association for Institutional Research. It concluded that default behavior can be substantially predicted by the pre-college.This is a new version of the Department of Education’s Sample Default Management Plan initially published in 2001.

No. and not having dependent children are all actions that significantly increase the likelihood of repayment. 36. pp. They point out the paradox that the federal government not only allows. Bruce. 1. Concludes that individual borrowers. J. No support was found for the hypotheses that institutional characteristics have an impact on student loan default. getting and staying married. Indicates that their model demonstrates that educational institutions. they found virtually no evidence of a direct link between default behavior and type of institution or highest degree offered. since much default behavior results from factors that are clearly beyond school control. and then blames the institution when they default. Vol. Data from three national databases were merged for the study: the 1987 National Post-secondary Student Aid Study of federal financial aid recipient. organizational structural/functional approaches. 41 .A theoretical framework for this research was developed based on four perspectives: theories of human capital and public subsidy. concerned about high default rates of their students and the impact it may have on their institutional future due to government policy. Indicate that majoring in a scientific or technological discipline. Individual and Campus Characteristics Associated with Student Loan Default. marital status and taxable income). the Integrated Post-secondary Education Database System of campus characteristics and the College Board Survey. Suggests that government policy and practices holding institutions accountable for the defaults of their students is counterproductive and it is unfair to blame institutions that serve risky borrowers for default behavior that may occur years after students have left the campus. Research in Higher Education.72. Fredericks & Szelest. earning good grades. Summarizes the same research outlined in Voklwein & Szelest (1994). dependent children and future earnings. Volkwein. should be held accountable for high default rates. especially propriety schools. but encourages institutions to give loans to students who are poor credit risks. In two populations (all borrowers and those at non-proprietary schools). addressing the question of whether student loan repayment and default behaviors are more highly related to the characteristics of the college attended or to the characteristics of the individual student aid recipient. 1995. like broken marriages. pointing out that proprietary school borrowers appear to be importantly different from borrowers at accredited degree-granting colleges and universities. Warns that institutions. they report that more than half the defaulters are students who attended proprietary schools. two college measures (major and GPA) and three post-college measures (highest earned degree. Significant influences on default behavior were found to be predictable from borrower characteristics . and student-institution fit models. rather than institutions. may look to simplistic admissions indicators that may predict and screen out likely loan 92 . On the other hand.one pre-college characteristic (race). borrowers’ ability to pay. persisting to degree completion. serving high-risk student borrowers and offering them lower levels of training and education can expect to have relatively high default rates.

NASFAA Journal of Student Financial Aid. regardless of the ethnic group.000 student borrowers at 1. and ensures student degree completion. Vol. Journal of Higher Education. marital status and number of dependent children showed similar levels of income and loan default. pp. and (d) experiencing unemployment.23. Among the findings working while in college appeared to have lowered default by 7 ½% for non-white borrowers. Woo.with the result that at some accredited two-year and four-year colleges. given over 90% of borrowers surveyed understood the loan should be repaid. an analysis showed that vocational schools. but didn’t influence black borrowers. 2002. Factors that predict default in the Federal Family Education Loan Program were examined by linking a database of California student borrowers with background financial and demographic information and post-college employment data. are more likely to have students who default on their loans. It was also found that lacking knowledge about repayment obligations was not a serious problem. Factors Associated with Student Loan Default Among Different Racial and Ethnic Groups. 32. J. 2. Factors Affecting the Probability of Default: Student Loans in California. No. pp. No. particularly privates. 69.400 institutions. encourages study in both pure and applied scientific disciplines. Less optimistic was the fact that one in four was confused about the payment process and three of four were not aware of loan deferment options. March/April 1998. educational opportunity for deserving students could be diminished. The authors conclude that their overall findings dispute national policy and suggest campuses assist student borrowers by promoting good academics performance and degree completion. 2. 93 . This provides an analysis of National Post-secondary Student Aid Study data for 11.defaulters . Fredericks & Szelest. (b) leaving school without a degree. 206 .237. 5 . Concludes with advice that their model suggests schools can best assist their student borrowers by creating a climate that promotes good academic performance. Bruce. Volkwein. The study identified several factors as strong determinants of default (a) student background demographic and financial characteristics. (c) having low wages after leaving school. Borrowers with similar earned degrees. Vol. Controlling for these socioeconomic variables. Jennie.

as well as preparing for life after college.cba. this award-winning website is found at: http://www. Among the many components are: a Financial Knowledge Assessment. It provides high school and post-secondary students and parents information about planning a career. http://www. paying for post-secondary education.ca Mapping Your Future Website Mapping Your Future is a public service website providing career. and Loan Repayment Calculator.Additional Web-based Default Prevention Resources for Financial Aid Administrators Canadian Bankers’ Assocation Your Money Website Among the resources included in There’s Something About Money website is a pop quiz on money matters.mapping-your-future.cfm CanLearn Website Developed by Human Resources and Skills Development Canada in collaboration with provincial and territorial governments. financial aid and financial literacy information and services.canlearn. selecting a school. http://www. a Debt Management Quiz.ca/eng/index. The website serves as a portal to the YourMoney Network which includes links to a large number of websites relating to money matters for young people and their parents. It includes entrance and exit On-line Student Loan Counselling (OSLC) for Stafford and Perkins Loans. Sponsored by a group of guaranty agencies participating in the US Department of Education’s FFELP (Federal Family Education Loan Program). a budgeting tool. The materials include: Guide to Planning and 94 . a Financial Planner including an Education Cost Calculator and Budget Estimator & Planner.org NASFAA Financial Aid Night and Counselor’s Materials The National Association of Student Financial Aid Administrators (NASFAA) has developed materials for financial aid administrators and high school counsellors taking part in Financial Aid Nights.yourmoney. college. and a ‘Credit 101’ module. the CanLearn website is a one-stop on-line resource for students and their families to plan. A special section for financial aid professionals includes a list of default prevention and debt management techniques. save and pay for post-secondary education.

QAP staff expect the volume of school submissions to increase in 2006. The module can be located at: http://www. The database is a mechanism for schools to share financial aid management practices that work well on their campus.RUTGERS. send a message to: LISTSERV@EMAIL.ed. it is designed to assist schools manage their cohort default rates and to prevent students from defaulting on federal student loans. Through a series of statements. Available at http://www. this is a forum for all those involved in financial aid to exchange ideas on default prevention issues.nasfaa.Conducting a Financial Aid Night and Financing Education Beyond High School.EDU with this command in the body: SUBSCRIBE DEFAULT_PREVENTION@EMAIL.jsp Tools for Schools: FSA Assessments School Default Management Web Module This is one of five modules developed by the US Department of Education’s Federal Student Aid Quality Assurance Program to support key school management tasks.gov/qamodule/DefaultManagement/Default Management.asp National Default Prevention Listserve Hosted by Rutgers University.ifap.ifap. Includes regular postings by the US Department of Education Federal Student Assistance office.org/subhomes/financialaidnight/FANight.ed. Among the school-based practice categories is ‘Default Management’ The website can be found at http://www.gov/IFAPWebApp/qualityassurance/AppendixD. questions and links to additional resources. (2) in-school 95 .RUTGERS. To subscribe. While it initially became operational in the early fall 2005. a financial aid presentation script and PowerPoint slide show providing the basic information students and parents need to know when applying for financial aid.EDU Your Name (do not put anything in the subject line) Tools for Schools: Effective Practices Database The database is a part of the US Department of Education’s Federal Student Aid Quality Assurance Program and located on the IFAP website (Information for Financial Aid Professionals Library). It is organized into keys for successful debt management and best practices for each stage of the life of a loan: (1) application and loan origination.html USA Funds Best Practices in Debt Management Online Manual This manual provides suggestions and tools to assist financial aid administrators with their school’s debt-management and default-prevention efforts.

org with the following text in the body of the message: subscribe debtmanagement your e-mail address USA Funds Solving the Retention Puzzle: Best Practices in Student Retention Online Manual This manual helps campus administrators solve the student retention puzzle by offering resources.usafunds. (4) repayment period.org/financial_aid/debt_management/solving_retention/index 96 .usafunds. plus an archive of all former issues.usafunds.org/financial_aid/debt_management/best_practices/index USA Funds Education Access Report This electronic newsletter sponsored by USA Funds.usafunds. consultations and other programs of offered through USA Funds’ debt management initiative.period. Campus-based financial aid professionals can post questions and share challenges. The Education Access Report can be found at: http://www. tools. The website includes the current issue of EAR. offers financial aid administrators and lending professionals weekly updates on the latest education/access and higher education finance issues and trends. The manual is located at: http://www. A previous newsletter “Debt Management Perspectives” has been incorporated into the Education Access Report. Includes a guide for developing a default management plan and a sample plan. (3) grace period. The manual is located at http://www. checklists and case studies in successful retention practices.htm USA Funds Debt Management Forum This forum was established by USA Funds to promote the sharing of best practices in debt management and education loan default prevention among financial aid professionals. sources and best practices regarding debt management for students and former students. as well as techniques and practices that help prevent defaults on federal education loans. Financial aid administrators wanting to subscribe to the list can do so by sending an e-mail message to majordomo@lists. debt management updates and the latest news about workshops.org/news/aboutear/index. This section provides information on programs that campuses are using to prevent defaults.

USA Funds’ Default Management Plan: http:///www.asp 97 . Overall Default Management Planning There are a number of helpful resources to assist a post-secondary institution prepare and implement a default management plan 1. (b) before post-secondary.htm 2.gove/dpcletters/GEN0514.Appendix B: Selected ‘Tools’ for Use in Post-secondary Institutions This section describes specific strategies and tools that can be used by postsecondary institutions to improve the government student loan repayment of their students.usafunds.111) for a copy of this plan.html 3. In many cases. It includes ideas that emerged from the surveys of student aid administrators across Canada and the developments in the ten provinces and territories. and increasing student success in post-secondary studies. improving the knowledge students and their families have about student aid/loan opportunities and obligations. (d) in-school and late stages of enrolment. US Department of Education Sample Default Prevention and Management Plan: http://ifap.org/subhomes/financialaidnight/FANight. These ideas are organized into (a) overall default management planning. (c) early stages of enrolment. The Federal/Provincial/Territorial Working Group on Designation’s Default Prevention Plan outlined in Best Practices Guidelines: “School Tools” for Improving Repayment Performance. 107.ed. either a website reference is included or an actual document is referred to and attached at the end of this appendix. NASFAA Financial Aid Night & Counselor’s Materials.org/financial_aid/debt management/best practices/keys to success/develop_plan/sample_plan/index. and (e) after students leave school.nasfaa. which could be used as a template for Canadian schools. with expanded reference to the student loan repayment requirement and the implications for student loan borrowers: http:///www. See attached Document #1 (p. Before Post-secondary 1. as well as approaches and resources found on the many websites in the US and Canada that are targeted at improving financial literacy in general.

finaid.ca/LearningClicks/checklist.2.ca/welcome/finance. 113). An example of this is information developed by a Vancouver-area school. One example is the University of British Columbia’s ‘Financing Your Education’ module on the Awards & Financial Aid Office website. 3.phtml 5. Publications (hard copy or web-based) on costs and financing of postsecondary can be made available to prospective students. See attached Document #3 (p. This could also be adjusted to fit the Canadian context. which provides a comprehensive look at planning starting with ‘goals and values’. an interactive costs and resources worksheet. Mapping Your Future’s downloadable PowerPoint presentations about repayable and non-repayable student aid for use with high school students. 8. including reference to repayable student loans and non-repayable forms of assistance: www.ubc. identifying repayable and non-repayable sources of assistance.ab. Workshops offered to students (and parents) to provide information on financing education.alis.com/students/checklist. including specific information on student loan obligations and the consequences of default. See attached Document # 2 (p. ‘Paying for College and University’.gov. High school graduates who have gone on to post-secondary can provide very useful information to students nearing completing of grade 12 by sharing information about ‘things they wish they’d known when entering post-secondary’.asp 6. 113) for an outline for a 3-hour workshop. A Grade 9 to 12 checklist of things students need to do to plan for postsecondary can be found on the Government of Alberta’s Learning Clicks website: http://www. See http://students. and key information on options to investigate when the student discovers a budget shortfall. Student Success courses established by colleges and universities can be delivered at high schools. 9. The award-winning FinAid website’s helpful ‘Student’s Financial Aid Checklist’. which includes important ‘to do’s’ starting with the junior year of high school. These could be customized for the Canadian context and the specific postsecondary institution: http:mapping-your-future. 7.org/mhsc/ 4.cfm 98 . Financial aid and financial planning information distributed to Grade 12 students by college and university high school liaison reps when visiting schools.

ucfv. 3. 6. Financial Fitness and Debt Management): http://www. including a financial planner. sufficiently prepared to have a good chance of success. a budgeting tool.ucfv. and several quizzes (ones dealing with Financial Knowledge Assessment.cba.10.canlearn.ca Early Stages of Enrolment 1. The Financial Aid office could present special targeted information sessions on student assistance to students nearing completion of pre-entry programs. an Education Cost Calculator. applicants can be e-mailed the name and address of ‘their financial 99 . which includes a number of tools for students and parents.yourmoney.ca/future/cfpe/CFPE.htm (http://www. 5. Financial Aid information can be sent to all students with their offer of admission. which allows students to register in 60% of a full course load (to meet government student assistance requirements) and supplement their post-secondary courses with non-credit courses in areas such as study skills. Effective pre-entry programs offered to bring students’ knowledge and skills to the level required for success before entry to post-secondary level programs.cfm CanLearn.bc. and a ‘Credit 101’ module. in co-operation with the Province of British Columbia: http://www. An example is the Laurentian ‘Introduction to University Program’ offered to students who don’t quite meet entrance requirements. http://www. a well as a portal to the YourMoney Network which includes links to a large number of websites relating to money matters for young people and their parents. In order to establish a relationship with the Financial Aid office prior to admission.ca/eng/index. Referring students to web resources such as: Comprehensive Financial Planning Workbook. 2. Ensuring the institution’s Financial Aid Office is pointed out or a stop on any student tours of the campus. 4. Admissions policies ensuring only qualified students are admitted to the institution. created by the University College of the Fraser Valley.htm) The Canadian Bankers’ Association YourMoney website which has a section There’s Something About Money incorporating a pop quiz on money matters.ca/fineaid/cfpe. an on-line budget planner.

writing college/universitylevel research papers. An example is Canadore College’s “Beat the Rush’ program. The Financial Aid office can sponsor ‘financial aid awareness weeks or days’ to focus students’ attention on important information on student aid and financial literacy issues. Financial Fitness and Debt Management components: http://www. a webbased version can be established. 9. 10. 8. critical thinking.html . on orientation and student services days. time management. can be found at: http://www. Financial Aid office staff members can visit classes at program starts. 12. Setting up a Financial Aid office table/kiosk at campus fairs.aid officer’. which includes information on the Financial Aid office. to introduce their role and provide general information about student assistance. library research.youcandealwithit. can be offered during the summer months. Including a module in ‘student success’ or ‘first year experience’ programs built around one of the financial literacy programs such as: Mapping Your Future’s Financial Fitness Tools.html CanLearn’s Financial Knowledge Assessment. particularly the Ten Steps to Financial Fitness: http://mapping-your-future. For students who are not able to attend Orientation sessions in-person. This can be done in co-operation with the campus student association/government. with instructions on how to apply for government student loans and other student assistance.org/features/dmtensteps. personal and career planning and transferring to other institutions. Orientation sessions. 11.canlearn.com/faas/default. Douglas College’s on-line orientation.ca 100 .ca/new-students/student-orientation/index. Offering ‘student success’ or ‘first year experience’ programs that include components such as study skills.bc.douglas. including key information on student aid and financial planning/budgeting. 7.htm AES’ Common Cents Tour: http://www. and at Open Houses to provide information to new and prospective students on financial assistance. This can be particularly useful for programs that commence at non-standard times of the year and those that have been identified as having students with high default rates.

a reinforcement of the importance of keeping comprehensive loan records. dropping courses or withdrawing.ca/ABDLWeb/en/entrance_intro. 15. In cases where students pick up their government student loan documents from the institutional Financial Aid office. individual in-person interviews. a review of borrowers’ rights and responsibilities. 14. a reminder of the importance of communicating change of status and contact information to the institutional financial aid office and the student’s loan service provider(s). The counselling could include: • • • • • • • • • a review of the terms and conditions of the loans.cra-arc. Entrance Counselling when students obtain their first government student loans. a review of policies relating to withdrawals and failures. program change. Establishing a student-staffed ‘Student Mentoring Centre’. and encouraging the centre to refer clients to the Financial Aid office for information on student assistance. including some for students running into problems when they are repaying their loans.html An on-line version of entrance counselling for Alberta students is available on the Edulinx website at: https://www. an information sheet can be included with the documents that outlines key points about the student’s responsibilities.html 16.) Students can be reminded of the importance of ensuring the Financial Aid office is notified of any address or contact information changes.g.debtfreegrad. particularly the importance of updating the Financial Aid office if there is any significant change in their personal circumstances (e. which can be offered to the general student population or targeted to specific areas such as residence students. specifically student deductions and credits via: http://www. Hiring students as Peer Counsellors to assist with financial literacy programs on topics such as budgeting.gc.edulinx. which can be ordered through: http://www. Providing students with Murray Baker’s The Debt-Free Graduate. 17. notification that there are various repayment options. a suggestion for students to review Canada Revenue Agency’s studentrelated income tax policies.html 101 . a review of the consequences of default. or via online versions. change to marital status or substantial change to their financial situation. either through group sessions.ca/tax/individuals/segments/students/menu-e. a referral to a student loan budgeting/financial planning website such as CanLearn.com/pages/debtfree_cnd. money management and credit.13.

but mainly focussed on encouraging student to use it keep all copies of correspondence and documentation about their loans. See sample of the folder used by Durham College and the summary page used by their students to list their student loans as they receive them . 20. including: • • • • • making sessions mandatory. Such sites can incorporate interactive exercises such as McMaster University’s ‘Budgeting Bonaza Game’ found at: http://sfas. including interactive ones. initially filled with important financial aid and student loan information. 19. 3. to develop strategies specifically targeted at retaining students in general and at-risk students specifically.mcmaster. Use of institutional financial aid websites. 114 and 115). prior to issuing loan documents prize draws (eg. presented by senior students. when student-based default data is available at their institution. Issuing student loan borrowers a folder. 102 .ca/budgeting/budgetbonanza.18. snacks etc. and to evaluate their implementation. gift certificates to the campus bookstore or food services) serve food. These could include the broader student support community such as Registrar’s Office staff. Post-secondary institutions could have their Institutional Research departments do research to develop a ‘profile’ of defaulters in their schools. copies of the Debt Free Graduate. 2. Using various incentives to encourage students to attend financial literacy or student loan counselling sessions. including the Financial Aid Office. The results could be used to target specific strategies to this at-risk group. academic advisors in faculties/schools and chaplins. Institutions can establish a Student Retention or Student Success Committee with representatives from key areas of the campus. Invitations to participate in such a referral network should be broadly-based whenever possible.htm In-school and Late Stages of Enrolment 1. plus give reminders about key dates relating to students’ government loans. such that front-line and professional staff from various services across campus meet at least once a year to share key information about their services and how to refer students to access them. incorporating people and departments that might not necessarily be defined as a ‘student service’.attached Documents # 4 and # 5 (p. to provide important information about all types of repayable and non-repayable assistance. issue some form of limited passes to special access to financial aid office services use of comedy skits. Encouraging the development of a co-operative ‘student services referral network’ on campus.

Articles can be included in the campus student newspaper on topics as outlined in item 3. including those on Work Study programs. for students commuting long distances). 10. with information relevant to their student loans. In the case of colleges and institutes with vocational job training programs. 11. 116) used by the University College of the Fraser Valley. 7. 103 . • institutional student data systems set up to provide automated reports/notifications to the Financial Aid office when students withdraw from courses or their program. See attached Document #7 (p. reducing living expenses. Establishing an automated ‘degree audit program’ to allow students to track their education plan. 117) which is the notice sent out by the University of Toronto. to act a peer helpers or tutors to assist students having academic difficulties. Workshops can be offered several times each term on topics such as budgeting. • academic advisors remind students dropping courses to see the Financial Aid office if they are government loan/grant recipients. See attached Document # 6 (p. monitor their own progress and to allow for intervention by student services if they stray from their education plan. E-mail reminders can be targeted to students who have previous student loans but are not continuing to borrow. • an information sheet (or e-mail) is sent to all student borrowers who are withdrawing. alerting them to the need to keep their previous loans in interest-free status. the Financial Aid office could establish agreements with some of these programs to be able to refer high-need students for services (e.g. 8. 5. • staff in the Financial Aid office make telephone contact with students who are withdrawing from courses or programs. to Auto Service departments for emergency car repairs with no labour charges. Developing an information sheet outlining the requirement for students to maintain a sufficient course load (usually 60%) for government loan eligibility.4. • for those institutions with on-line course withdrawals. Rapid follow-up on students dropping courses or withdrawing: • course add/drop form advises student loan borrowers to contact the Financial Aid office. and searching for outside scholarships. 9. Training students. a ‘pop-up’ box appearing when students attempt to withdraw on line. 6. advising them to contact Financial Aid.

gov/fp/attachments/activities_whatsnew/DA1202. These can include information on how to handle student loans after graduation and options if the student is not able to repay. A letter or e-mail sent to graduating students with government loans.12. including repayment obligations and the consequences of default. A kiosk can be set up in a high visibility area on campus towards the end of the academic year. in conjunction with the federal government’s National Student Loan Centre. signed by both parties.ed. emphasizing the importance of ensuring the government loan service centres(s) they are dealing with have their current contact information. Student Loan Repayment presentations or ‘Exit Workshops’ are given to graduating students. including programs for students having difficulties repaying. A success program could be established for students who have been placed on academic probation. A series of posters put on campus bulletin boards. 13. 104 . or other creative locations such as the back of washroom doors. 17. Students who don’t attend these presentations can be sent a ‘sorry you couldn’t make it’ letter. this counselling could include: • • • • a review of information given in entrance counselling. a review of repayment options. See http://www. Students identified by faculty for non-attendance or potential failing grades are contacted by the financial aid office to discuss implications for their student aid. whereby they are allowed to return to studies but are required to meet with a counsellor to identify a plan for success. An invitation can be included to contact the Financial Aid office.fp. similar to the AES series of entertaining posters including “Default on Your Student Loan and Watch Good Credit Go Bad”. together with an information sheet covering loan repayment information. 14. 16. staffed by Financial Aid office representatives and/or the National Student Loan Centre. Exit counselling when students are nearing graduation from their program or when they drop below the course load required to retain government student loan eligibility. a reminder to continue maintaining a comprehensive record of all correspondence and documents about their student loan(s). providing information on government loan repayment and programs for students having difficulty repaying. in group sessions or via on-line versions. 15.ppt 18. This plan would establish the responsibilities of the institution to provide remedial assistance and the responsibilities of the student to meet specified requirements that will support their success. plus contact numbers for student loan service centres. Provided through one-on-one in-person interviews or on the phone.

Assisting students to reinstate previously defaulted loans to put them back in good standing so they will be able to access debt management tools and additional funding in order to complete their studies. repayment processes and repayment assistance can be included in student newspapers towards the end of the academic year. This can be particularly helpful for programs that graduate students at non-standard times of the year or for those programs that have been identified as having high default rates. An information sheet on student loan repayment could be included with graduation diplomas/credentials. Use of the college/university’s intranet and student e-mail for targeted. 24. to provide handouts giving contact information for student loan service centres and to give instructions to students on how to update their address with the loan service centres. providing information on the services offered to students and explaining how to refer students for help. The Loan Repayment Calculator can be found at: http://srv650.jsp?langnslsc=en&bundle=stu 23.19. Encouraging the use of the CanLearn website to assist students with financial planning and calculation of loan repayment scenarios.gc. timed messages re important student loan information such as reminders re maintaining interest-free status and loan repayment obligations and options. 22. to inform students about the loan repayment process and the importance of keeping loans in good standing.ca/cslp-pcpe/cl/30/lrccrp/nlindex. asking about their reasons for leaving and the extent to which financial 105 . 25.hrdc-drhc. Information about government student loan consolidation. The Director/Manager of Financial Aid could meet with the chairpersons of programs whose students have high default rates to discuss strategies for informing students about their student loan responsibilities. The Financial Aid office visits loan-eligible programs that are nearing completion. 20. Presentations can be given by the Financial Aid office to faculty and staff. 21. plus advertising for loan repayment presentations or exit workshops. 26. Students leaving the college/university can be asked to complete a ‘exit survey’. After Students Leave School 1.

whereby post-secondary Financial Aid offices contact students who are about to default.issues drove their decision to leave. handling job interviews. This type of survey can be expanded to be used for students who are expected to return to school in the fall. but don’t. particularly if they don’t understand what it means or can’t start paying. Encouraging students to return to speak with Financial Aid office staff when they receive their notice of student consolidation. could be offered to alumni as well as students still in school. Effective student employment and placement programs. 2.S. Letting students maintain their college or university e-mail account for at least six months after they leave school so that e-mails can be sent through the campus intranet to students who are graduating. offering assistance finding career employment. 3. writing resumes. not collecting the loan calling at different times of the day mailing hand-written notes using contact information from several sources sending out information on repayment options and programs for students having difficulty repaying connecting the student with the loan service centre in a three-way call 106 . Approaches to LSDA recommended by the U. Considering involvement in a Late Stage Delinquency Assistance Program. Students can be helped to navigate repayment processes and debt management tools. 5. Department of Education include: • • • • • • a ‘soft touch’ focusing on assisting the student. 4.

Improving Repayment Performance –A Default Prevention Plan The purpose of student loan financing is to produce a product: a student borrower who will be a payer.The following Default Prevention Plan (pages 107 . Factors causing default include: • Poorly informed of financial aid information • Poor understanding of loan obligation and terms • Withdrawal from school • Unmanageable non-education debt • Family status • Personal and financial management. Default prevention can be seen from two perspectives: 1. From the time that students start their studies to the time they graduate. post-secondary educational institutions have multiple opportunities to interact with students and ensure that they understand all their academic and financial obligations with respect to their education. it is acknowledged that post-secondary educational institutions play a key role in managing the financial risk to student loan portfolios via their role in providing a quality education to the borrower and preparing them for their chosen career. a success personally. and socially. mitigating factors that cause default and 2. postsecondary educational institutions are a critical point of contact and support for the students.111) is an excerpt from the document Best Practices Guidelines: “School Tools” for Improving Repayment Performance prepared by the Federal/Provincial/Territorial Working Group on Designation. In turn. It is in this role that the Federal and provincial governments feel that post-secondary educational institutions can play a greater and increasingly positive role in students’ academic lives and obligations (including student loans). default avoidance carries a positive lifelong impact on the personal life of each student— and on society in general. To do so requires efforts at every stage of the student’s school and employment experience and prevention is crucial in avoiding default. financially. supporting factors that promote good repayment behaviour. • Unemployment/Low income relative to debt obligations Factors supporting repayment include: • Good understanding of loan obligations and terms 107 . Introduction In the Designation Policy Framework. During a program of studies. 2005.

• • • • Clear admission criteria Completion of program Employment/adequate income to meet debt obligations Well prepared for personal and financial management From these two sets of factors. and make the student’s experience a more positive one. Enhanced Entrance Counselling • • • Invite loan specialists and lenders to present at the sessions. Debt management plans. the post-secondary educational institution can ensure that a “good fit” is established between a prospectus student and a program of study. Distribute materials containing loan information to the borrowers for future reference. Once a student has been admitted to a program. key areas can be targeted when developing a default prevention plan: • Borrower Education • Alliance Building • Leveraging Technology • Personal and financial management • Loan obligation enforcement • Student Retention • Employment Initiatives/Services A default prevention plan based on some or all of these factors will help improve student success. This type of interactive session creates an environment in which the borrower can ask questions and voice concerns. Repayment options. 1. providing comprehensive entrance and exit counselling sessions is an excellent way to educate students on the rights and responsibilities of borrowing a student loan. A requirement for students to attend yearly review sessions can reinforce the information covered during the entrance counselling session. Provide counselling on: Responsible borrowing Budgeting. 108 . Salary expectations. Key Components of a Default Prevention Plan Borrower Education Starting with clear admission criteria. increase repayment rates.

Reference information. on graduation rates. Review Sessions • Discuss with students information about their loans including: Cumulative amount borrowed.• • • • • Provide access to information. Gather updated information from students. Remind students of their rights and responsibilities. Meet with borrowers at the end of the semester/program to identify students who may need additional counselling. Changes in their permanent addresses. Offer sessions intermittently throughout the semester to promote attendance. • • • • • • • 3. Include and emphasize the correct procedures transfer students should follow when notifying their lenders that they have transferred and in applying for interest free status. and Cover the consequences of default and what the borrower can do to avoid it. Let students know they can call the school for assistance. where available. provide them with the name and phone number of a contact person. Estimated monthly payment. Enhanced Exit Counselling • • • • • • • Invite lenders and service providers to present at sessions. 2. Provide students with the most up to date information on the names and phone numbers of lenders and service providers. Update students on changes in financial aid office procedures. Direct students to online websites where updates to student information can be performed. Offer one-on-one entrance counselling to students who cannot attend group sessions. 109 . including: New addresses and telephone numbers. Verify that all exit interview forms are completed in full. Estimated interest. Provide borrowers with online entrance counselling sites where available by lenders and service providers. graduate employment rates and default rates by institution and program Delay certification of loan applications until first time borrowers have attended a session. Offer one-on-one exit counselling to students who cannot attend group sessions. Confirm with students that they have received a recent loan summary. Send borrowers a letter or brochure if they were unable to attend an exit counselling session during their grace period reminding them of their rights and responsibilities and listing phone numbers to call for assistance.

Leveraging Technology Internet Access • Create a financial aid web page for students to view and use as a reference. • Provide computers for students to use. Forging alliances facilitates learning and promotes progress. Invite placement office counsellors to present at exit sessions. • Provide links for students to other financial aid and scholarship sites. Work Closely with Other Campus Departments to Promote Positive Repayment Behaviour • • • Stress the importance of default prevention to upper administration and request their assistance in helping secure resources. Take advantage of services where offered by lenders and service providers. Ask the school’s administration to allow students to use their school e-mail addresses for up to two years after leaving school to keep in contact with borrowers. it must have the support of its own campus in addition to lenders and service providers. Encourage students to use e-mail as a way to communicate with financial aid office staff and service providers. such as entrance and exit counselling via the web. 110 . either in the lobby of the financial aid office or in a lab setting. Invite industry experts to train financial aid office staff on default prevention methods. Make default prevention a priority for the entire financial aid office by educating front counter staff and advisors on default prevention measures. Email • • • Use email to communicate with borrowers and/or parents in the form of newsletters on a semester basis. Assist with skip tracing activities. Work Closely with Outside Agencies to Promote Default Prevention • • • • • Participate in pilot programs. to access financial aid information online.Alliance Building For an institution to successfully improve its repayment score. Contact the provincial loan program and request any tools/information that may be available to help counsel borrowers.

2. This will ensure proper counselling on loan repayment obligations.g. Some best practices with respect to retention are: 1. Withdrawal Management Plan Develop a withdrawal management plan to ensure that those students who do leave the institution before completing their program are informed of their responsibilities with respect to their student loans. job search websites. Monitoring of Graduation Rates by Program Institutions that monitor program graduation rates will be in a better position to identify. Student retention should be dealt with systematically throughout the institution rather than through isolated policies implemented by various departments or sections of an institution. 4. Employment Initiatives/Services • • • establish/enhance an employment resource centre which includes job postings. as those borrowers who do not complete their program are more likely to default on their loan. Administrative Policies and Procedures • Have effective methods for the communication of rules and regulations important to students. Academic Advising • Academic advisors should strongly encourage their advisees to make efforts to establish memberships in the social communities of their collegiate institution. rectify and/or eliminate programs that have low repayment rates improving overall institutional performance. resources on resume writing and interview skills Monitor the performance of programs with respect to graduate employment rates and graduate’s other labour market outcomes (e. Enhance relationships with employers of former graduates and other potential employers. • Offer transfer scholarships or gift aid to provide students with incentives for re-enrolling. post study income) through graduate employment surveys. 3. • Establish formal withdrawal procedures that require “sign off” by the financial aid office before a student is allowed to withdraw. 111 .Student Retention Reducing attrition is a key factor in preventing default.

8 Work Study 2.7 Sports awards 2.2 College and University awards • Entrance & transfer awards • Bursaries • Scholarships & other merit-based awards 2. Outline: 1. both repayable and non-repayable.2 Cost of attending post-secondary 1. including repayment obligations & repayment options • Provincial Loans & Grants 2. Student Aid for Upgrading Programs 5. Student Aid for Full-time Students (Each described in terms of award amounts.1 Government student assistance • Canada Student Loans.5 High school and community-based awards 2. Covers types of aid. as well as those planning to attend post-secondary after a period away from school. Other ways to help pay for college and university 5.2 Co-operative Education programs 6.9 Canada Employment Insurance funding 3.2 Where to go for more help • helpful websites • financial aid offices at colleges and universities J.4 Awards with special criteria • Affiliation awards • Students with disabilities • Women students • First Nations students 2.1 Objectives of presentation 1.1 Registered Educational Savings Plans 5. Useful for high school students and parents.6 Incentive programs 2. eligibility criteria. Conclusion 6.3 Differences between repayable and non-repayable aid 1. how to apply and where to get more information) 2. Orum 2005 112 .Workshop: Paying for College & University Format: Three-hour presentation Brief Description: Strategies for identifying and applying for government student assistance and other financial aid available to college and university students.4 Differences between ‘need-based’ and ‘achievement-based’ assistance/wards 2. Introduction 1.3 Canada Millennium Foundation Excellence Awards 2.1 Student budgeting 6. eligibility criteria and tips on how to complete application forms. Student Aid for Part-time Students 4.

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N.ca/nslsc/ Return to School and Reinstate to Interest-Free Status If you return to school in at least 60% of a full-time course load (40% with a permanent disability) for at least 12 weeks.CIBC National Student Centre 1-800-563-2422 .Bank of Nova Scotia Student Loan Centre 1-888-284-3044 117 .on. OSAP does not allow course loads to be averaged over two semesters to equal 60%.ca and http://canlearn. Unable to Repay Canada/Ontario Student Loans? If you are unable to repay your student loans due to lack of employment. OSAP requires that students maintain a course load of 60% in each semester to continue to be eligible for assistance (40% course load for students with a permanent disability). It is your responsibility to set up a monthly repayment schedule with your lender(s) and ensure your address is up-to-date.ca National Student Loans Service Centre 1-888-815-4514 For OSAP loans borrowed prior to September 2001: .gov.on. your bank and the government of your registration. Colleges and Universities has recalculated your OSAP entitlement due to a reduction in your course load during the current academic year.Royal Bank Student Loan Centre 1-800-363-3822 . Failure to meet this criterion will lead to OSAP probation. Detailed information is available at http://osap. Applications are available from the National Student Loans Service Centre 1-888-815-4514. Canada Student/Ontario Student Loans will become repayable SIX months from ______________________________________. Subsequent failure in a second period of study will lead to a loss of OSAP funding for a minimum of 12 months. you can reinstate your interest-free status on outstanding Canada/Ontario Student Loans. illness or disability. The Ministry of Training.gov. you should investigate the Interest-Relief Program. Satisfactory Academic Progress OSAP recipients must successfully complete 60% of a course load in each semester (40% for students with a permanent disability). Have your College/Faculty complete a Continuation of Interest-Free Status (Schedule 2) after classes begin.[University of Toronto Notification sent to all borrowers who have withdrawn] ______________________________________________________________________ Surname Given Name S. OSAP Overpayments Can Affect Future OSAP Funding More Information: http://osap. Your lender(s) will be notified of this change. This form notifies the National Student Loans Service Centre.I.