Becky Powell-Default Aversion Coordinator
Ann Isackson-Director of Financial Aid
Grand Rapids Community College
June 2015
Year
Students in
Repayment
Students in
Default
Cohort
Default Rate
2008
2320
450
19.3%
2009
2579
565
21.9%
2010
3125
814
26%
2011
4270
1131
26.4%
2012*
5667
1403
24.7%
* Draft Rate – Final Rate Available September 2015
• Enrollment spike due to national recession and
high unemployment rates in Michigan
• Lack of student preparedness, persistence and
retention
• Limitations on the ability to deny loans to
high risk borrowers
• Enrollment reporting errors
• Auto packaging student loans
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
Applicants
Awarded Loans
15,666
17,656
18,548
18,997
18,800
7,250
5,596
Disbursed Loans
6,661
7,809
8,998
9,292
9,423
6,475
5,193
Loan Amount
Totals
$17.3M
$20.7M
$29.9M
$30.9M
$30.4M
$17.5M
$17.6M
• Business &
Finance
• Counseling
• Enrollment Mgmt.
• Financial Aid
• Institutional
Research
• President’s
Office
• Provost
• Student Affairs
• Student Records
• Student Success
& Retention
• Designate personnel and resources necessary to
develop default management plan
• Contract with a 3rd party servicer for
delinquency outreach and financial literacy
• Enhance enrollment retention efforts
• Analyze delinquent and defaulted borrower
profiles
• 85% were Pell eligible
• 52% had an EFC of 0
• 55% had a HS GPA of 2.49 or lower
• 38% were on academic probation
• 46% were Caucasian; 40% African American; 8%
Hispanic; 1% Native American; 1% Asian; 4% not
identified
• 93% did not complete their degree
Average Credits
Attempted
Average Credits
Completed
Average
Cumulative GPA
Average Course
Completion Rate
34
17
1.39
37%
• Develop a holistic approach which:
• Involves cross-campus collaboration
• Focuses on financial literacy
• Leverages support of 3rd party servicer and
default aversion coordinators
• Positions college as an ally, helping students
make solid education-related financial decisions
• Includes layered communication and outreach at
touch points throughout the student life cycle
• New Student Outreach
•
Develop CRM messaging to new and prospective
students focused on paying for college and
responsible borrowing; develop Paying for
College microsite
•
Incorporate financial literacy components into
in-person and online orientation
•
Build partnerships and create buy-in of faculty
•
Introduce financial literacy into all first
year experience courses
• Returning Student Outreach
• Develop a student leader peer mentoring program
• Leverage texting and CRM software to deliver
informational messaging to students
•
•
•
•
At time of loan award and disbursements
During SAP warning semester
When student has attempted between 30 and 40 credits
When student is nearing aggregate loan limits
• Integrate financial literacy materials into
academic probation success workshop
• Departing Student Outreach
• Identify and connect with students for whom
return of funds calculations have been completed
• Provide loan counseling and repayment
information at annual Gradfest event
• Pilot in-person exit loan counseling
• CRM and text messaging triggered by petitions to
graduate, transcript requests, return following
academic suspension
• Delinquency Outreach
• Use of NSLDS reports to identify delinquent
borrowers
• Contract with ASA $ALT for delinquency contact
and resolution
• Develop process to ensure updated student
contact information
• Additional phone, text, email and snail mail
outreach by default aversion coordinators
http://ifap.ed.gov/docs/CallQRef.pdf
http://ifap.ed.gov/DefaultPreventionResourceInfo/
https://financiallit.org/
https://www.creditcardinsider.com/learn/definitive
-guide-student-loans/
Becky Powell
Default Aversion Coordinator
Grand Rapids Community College
Phone: (616)234-3164
Email: rebeccapowell1@grcc.edu
Ann Isackson
Director of Financial Aid
Grand Rapids Community College
Phone: (616)234-4059
Email: aisackson@grcc.edu