ASA Can Help You Help Families—Now, When They Need It Most

To those of us in the financial aid industry, it may seem like the worst of the recent turmoil has passed. After all, the ECASLA bill, which allows the federal government to either purchase participation interests in FFELP loans or buy them outright, has already encouraged many lenders to remain in the student loan market. And Congress and the President have even secured its extension for the 2009–2010 school year.

But to the families, prospective students, current students, and graduated borrowers you deal with every day, the skies may seem far from clear. To them, the “bailout” bill passed in Congress and the troubled stock market signal that there is still lots to worry about—from the stability of their jobs, to the balance of their 529 accounts, to the value of the homes they hoped would allow them to borrow home equity loans. The tight credit markets, combined with frequent media reports that confuse federal and private loan availability, have made families uncertain whether borrowing for school will be a possibility at all. And for borrowers in repayment, the economic downturn has them concerned about their ability to make their monthly payments on time.

The good news for you is that ASA is working in parallel with your efforts to reassure and educate families and borrowers. We’ve rounded up some resources to help you help them:

For you:
Do you volunteer for Financial Aid Nights in your community? Don’t forget all the resources provided by NASFAA, like the Financial Aid Night page, which includes a Guide to Planning and Conducting a Financial Aid Night, a slideshow and presentation guide, and handouts for students and families, such as a student aid program summary, financial aid checklist, and financial aid glossary

For in-school students and families applying for student loans:

• “Don’t Worry, Student Loans Are Safe,” an ASA blog that explains to families in simple terms exactly why they can depend on federal student loans even when other parts of the economy seem less stable
• Back to School on a Budget,” an ASA blog that teaches borrowers the six smart money rules that can get them through school on less cash—and with less debt
• From the Project on Student Debt, Student Loan Options in a Tight Credit Market

For borrowers who may be struggling to fit student loan payments into a monthly budget:

• Manage Your Loans Through Hard Times,” an ASA blog that reminds borrowers in repayment—or those about to enter repayment—why keeping up with loan payments is so important, then reviews the payment plans and deferment and forbearance options that can make their situations more workable if they’re having a difficult time
• The Top 10 Student Loan Tips for Recent Graduates from the Project on Student Debt

The federal government also has several resources on general debt management and financial literacy:

• 66 Ways to Save Money (in Spanish and English)
• Credit and Charge Cards: What Consumers Should Know About the Cost and Terms of Credit (downloadable report)
• How to Establish, Use, and Protect Your Credit (downloadable report)
• FDIC Money Smart Curriculum, with 10 financial literacy education modules on topics such as the basics of credit, why and how to save, and how to keep track of money.

As always, amsa.com offers additional tools and resources for borrowers at our borrower community as well as resources tailored toward you in our financial aid professionals community.

So, what’s the mood in your world right now? Are you hearing from worried families, students, and graduates? Have you found successful strategies for keeping these audiences informed? Most importantly, what else can ASA do to help you help them get through these tough times?

Posted by Susan Nathan on December 17, 2008 at 04:29 PM EST

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