ISAC Default Prevention Partnership with Consumer Credit Counseling

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ISAC Default Prevention Partnership with Consumer
Credit Counseling

• Tom Cox, CCCS
• ISAC
• Patricia Hunter
• Metro Family Services

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Public Awareness Campaign

• Media Relations
• Use of the Internet
• Early Intervention Project

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Media Relations

• ISAC Media Programs
• Default Prevention Outreach Communications
  Materials
  
• Via the Internet www.isac-online.org
• Future Projects
• Internet Personal Finance Literacy Course for
  Young Adults
  
• Default Prevention Video and Live Skit

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Student Focus Groups
Tell It Like It Is

• Show Positive Messaging
• Show ISAC Can Help
• Use Bright Colors
• Display Posters in a Variety of Places
• Suggested Incentives to Stay in Touch
• Tell It Like It Is

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Student Materials
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FAA Brochure
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Student Posters
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Student Portfolio
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Student Repayment Map
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Student Contact Card
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Student Address Notification
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www.isac-online.org
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Default Prevention Outreach
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Loan Repayment
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Loan Deferment
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www.Mapping-Your-Future.org
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Financial Planning
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www.nfcc.org
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www.jumpstartcoalition.com
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Career Advice
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Financial Aid Administrators
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Power Point Presentations
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Personal Finance Education Overcoming Financial
Hurdles

• Sponsored by ACA International
• The Association of Credit
• Collection Professionals
• Material Provided by The American Bankers
  Association, CBM Credit Education Foundation,
  Efunds,Experian, Federal Trade Commission,
  
• Minnesota Bankers Association, U.S.Dept of
  Labor, and the Illinois Student Assistance
  Commission.
  

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www.CollegeZone.com
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www.CollegeZone.com
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ISAC Early Intervention Project Strategies

• Funded by Default Reduction Activities HEA
  422(h)
  
• Identifying Students Who Withdraw Early
• Schools with CDR over 7
• Schools with over 30 defaults

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Project Objective

• To show the impact of early intervention loan
  repayment counseling on ISACs annual cohort
  default rate. rate.

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At Risk Students

• 1st Generation College Students
• Low-Income Families
• Certain Minority Groups
• 1st Year Students
• Withdrawal Early From Program

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Cohort Default Rate
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Large Default Populations

• The largest impact upon ISACs cohort default
  rate comes primarily from large institutions with
  low cohort default rates.
  
• Example School B 141 defaults, but
  3.7 School D 93 defaults, but 3.3

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Access Database
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Update Borrower Case
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School Reports
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Consumer Credit Counseling

• Patricia Hunter
• Vice President
• Family Economic
• Development

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Metropolitan Family Services

• Nationally Recognized and Accredited Provider of
  Financial Counseling, Debt Management and
  Financial Education for Over 30 Years.
  

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Credentials

• Member of National Foundation of Consumer
  Counseling since 1981
  
• Accredited by The Council of Accreditation
• Licensed by the Illinois Department of Financial
  Institutions
  
• Counselors Certified by the National Foundation
  of Consumer Credit
  
• All Counselors have minimum of Bachelors Degree

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Skyrocketed Consumer Debt

• Non-secured consumer debt has reached 1.6
  trillion in 2001
  
• Consumer bankruptcies will exceed prior record of
  1.5 million in 2001

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Look Before You Leap!!

• Did You Know That Bankruptcy...
• will not give your credit a clean slate or fresh
  start
  
• stays on your credit report for up to 10 years!
• will negatively impact your ability to secure
  future credit or loans
  

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The Consumer in Financial Crisis

• Over-use of credit cards to support life style
• Aggressive solicitation targeting college
  students
  
• Poor money management skills
• Debt or buy now pay later approach to
  purchasing is acceptable today

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Tips for College Students

• Seek grants and scholarships early
• Pay as much as you can as you go
• Borrow only what you need
• Work part-time
• Avoid credit cards

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Financial Literacy Education

• Money Management
• Developing Wise Money Management Skills
• Establishing and Re-establishing Credit
• How to Repair Your Own Credit
• Developing a Spending Plan
• How to Develop and Maintain a Budget
• Consumer Rights and Responsibilities
• Your Credit Report

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Metropolitan Family Service - Programs and
Services

• Mental Health
• Family Violence Prevention
• Legal Aid Bureau
• Child Welfare
• Substance Abuse Networks
• Older Adult Services

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CCCS is a Financial Lifesaver

• Educates through budget and credit counseling and
  Financial Literacy
  
• Provides low cost and supportive debt management
  programs
  
• Refers to internal/external programs and services

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Contacting Metropolitan Family Services,CCCS

• Metropolitan CCCS has fully staffed offices
  throughout Chicago and suburbs. Face to face or
  telephone counseling is offered at all locations.
  Se habla Espanol
• Contact us at
• 1-888-239-2227
• cccsmetro.com

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THANK YOU!

• Tom Cox, CCCS
• ISAC
• Patricia Hunter
• Metro Family Services