I wrote a similar article about how academic advisors can help: http://www.psu.edu/dus/mentor/080227rc.htm
Posted by Reed Curtis on June 07, 2008 at 01:12 PM EST
In Rough Financial Waters, Be a Lifeboat for Students
Let’s get straight to the nitty-gritty: In this economy and credit climate, families will face tough times. And they’ll need your help.
Some FFELP lenders have left the industry—and students may not even be aware of it. Borrowers may discover that their private lenders have stopped making student loans or find they have been rejected by lenders’ newly stringent screening processes. This is an opportunity for financial aid officers to encourage these borrowers toward more advantageous federal loans, or—better still—help them create a slimmed-down budget so they can avoid additional borrowing.
Graduates may find themselves struggling with increased consumer debt or floundering in a tight employment market. They’ll need timely and clear information about deferment and forbearance options that could save them from defaulting on their loans.
And some families may be hit so hard by the economic conditions that students will be forced to take a leave of absence from school. Of course, financial aid officers should try to help these students find additional aid to keep them enrolled. But if that’s not possible, FAOs have a responsibility to explain the rules of grace periods and repayment that will come into play. Otherwise, these separated students will find themselves at an increased risk for delinquency and default.
Whether their lenders have actually left the student loan industry, or whether they’re just afraid that the pool of funding is drying up, students and families will have a range of questions and concerns. The financial aid community can—and must—address these issues head-on.
What can you do to foster good communication? Here are some ideas:
- Update your website with answers to common queries about the credit crunch and its fallout. The more information you post here, the more knowledgeable and in control families will feel during this tough time.
- Use April award letters to start the conversation. Consider including a fact sheet in admissions packets about these issues.
- Contact students one-on-one if their lenders have left the market. They’ll need proactive assistance in finding new lenders and signing new MPNs.
- Adjust on-campus events on financial aid to encompass credit-related topics and calm families’ concerns. Explain the differences between federal and private aid and emphasize the stability of the federal loan programs.
Most of all, the financial aid community must communicate that we’re a resource for all students—incoming, current, and graduated—and their families. If we let them know that the financial aid office is a good place to start when they have questions, we’ll go a long way toward keeping them afloat in these rough financial waters.
Posted by Susan Nathan on April 23, 2008 at 03:41 PM EST
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Blog Author
Susan Nathan
Vice President, Lender and School Services
Biography
Susan Nathan is Vice President of Lender and School Services at American Student Assistance (ASA)®. She has held this position since October of 2002. Ms. Nathan joined ASA in February 1987 as supervisor of the external program review unit. She has held roles of increasing responsibility in product development, operations, client management and customer service, and marketing. She has been a member of the design teams for a number of ASA’s signature products, including FASTFUND, ASA’s disbursement product, and ASA Direct, ASA’s web processing tool. She was the manager of the business plan for ASA’s major system conversion in 1998.
She is credited with the development of ASA’s nationally recognized client management team. Ms. Nathan oversees the ASA Advisory Council, and is the staff liaison to the Marketing Planning Committee of ASA’s Board of Directors.
Prior to joining ASA, Ms. Nathan was a Financial Aid Officer for Lesley College. She is a graduate of Brown University and a fellow of the Institute for Educational Leadership. She is a member of state, regional and national financial aid associations and is routinely sought by the financial aid community as a professional development trainer.
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