Proactive CDR Cohort Default Rate Prevention By Rick

Proactive “CDR” Cohort Default Rate Prevention By Rick Moreno, Ph. D. MORENO Educational Consulting Services

Proactive Default Management � In order to manage your CDR(cohort default rate) it is a good idea to approach from both origination as well as repayment. Steps: 1) Identify existing borrowers and assess level of indebtedness, educational status (excess hours, etc. ) 1) Proactive financial literacy for first-time borrowers 2) (This included Dept of Ed entrance counseling & any additional literacy programs offered by TGSLC, etc. )

Identify the borrowers � Request your IT department to provide a listing of students: ◦ who have student loans (renewal and first time borrowers) ◦ Demographic information to include �GPA �SAP status �Program �level

Analysis of Current Borrowers � It is recommended that an analysis of borrowers by demographic such as program (major), academic level, EFC, as well as course load � Patterns may reveal additional need for providing specific financial literacy to particular groups (assistance in applying for scholarships rather than loan, etc. )

Mandatory Entrance/Exit Money Management Orientations � Recommend having students attend a “Mandatory Money Management Orientation” � Recommend having a schedule of orientations (every other month with a morning/evening session) and a mandatory sign-in WITH a sign-in deadline � Recommend the student be REQUIRED to attend these EVERY year, not just an entrance and an exit.

Required Documents to attend Orientation � In order to attend the Money Management Orientation, First-time borrowers must have: � PIN � Social security number � Driver’s License � Attendees will be accessing two links and printing screens � www. salliemae. com � www. nslds. ed. gov

Money Management Orientation � Attendees will be shown how to navigate through both websites, then asked to navigate through both themselves and to print the websites (once logged in). Renewal students will be asked to print the summary of their loans in BOTH websites to ensure they know how to access who owns and who is their servicer(s).

SUMMARY � Students are computer literate, but not process literate. By walking them through the loan process (aside from entrance and exit counseling) institutions are ensuring students know how to manage their student loans. It is a best practice to include step by step processes and to email these to the students who are borrowing funds, as the more these processes are communicated to students, the less likely they are to default.

Thank You! � Rick Moreno, Ph. D. � MORENO Educational Consulting Services � www. morenoeducationalconsultingservices. com