Master Slide

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Debt Management Practices Throughout the Borrower
Lifecycle

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• Wanda Stover
• North Carolina State Education Assistance
  Authority
• Linda Viau
• Vermont Student Assistance Corporation
• Bill Kohl
• National Student Loan Program

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• Part I
• Historical Perspective
• Linda L. Viau
• Associate Director
• Vermont Student Assistance Corporation

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Historical Perspective

• for years, holders of student loans focused their
  activities on effective default collection
  strategies
• over time, that focus has drastically changed to
  early intervention and default prevention
• Why the switch?
• U.S. economic downturn
• exacerbated by the events of September 11th
• tight job market
• consumer credit crunch

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Sequence of Events

• May 2001 - NCHELPs Debt Management Committee
  developed a survey to determine some of the
  practices being utilized by the industry
• Summer of 2003 - the Debt Management Committee
  identified the need for additional information on
  industry practices

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Sequence of Events (continued)

• intent was to identify best practices utilized
  within the industry (with measurements) and then
  share the results with its colleagues
• FSA at ED was working on a similar project
• Fall 2003 Default Prevention Subcommittee of
  Debt Management Committee designs survey

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Sequence of Events (continued)

• survey initially sent to Subcommittee members as
  a trial
• January 2004 - NCHELP Board approves the use of
  the survey
• March 2004 - survey was sent to all NCHELP
  members
• Summer and Fall of 2004 - results tabulated and
  follow up completed

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Components of the Survey

• all NCHELP members invited to respond
• privacy maintained
• activities listed and detailed with an indication
  of where in the borrower lifecycle the
  activities would occur
• matrices were developed for eachNCHELP
  organization
• guaranty agency
• lender/holder
• third party servicer

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Types of Activities Included

• high school outreach
• counseling
• communication methods
• financial planning
• default prevention tools
• training
• research and development
• technology
• skip tracing

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Borrower Life Cycles

• outreach
• in school
• grace
• repayment
• delinquency

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End Users

• school
• student
• other organization

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Part IIExamples of Survey Responses
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Early Outreach Examples

• financial aid counselors and co-sponsored
  programs
• website
• publications

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In-School Examples

• on-line calculator
• on-line presentations
• consumer credit counseling in schools

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Grace Period Examples

• web-based grace period information
• early withdrawal counseling program
• skip tracing

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Repayment Examples

• web-based repayment information
• default prevention workshops
• on-line counseling

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Delinquency Examples

• counseling via telephone
• claim aversion strategies
• default management systems

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• Part III
• Examples of Initiatives Developed by Nebraska,
  North Carolina, and Vermont

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Money Management Counseling for students
Presented by Bill Kohl Vice President of
Operations NSLP
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Money Management Counseling

• available at www.nslp.org
• click on Loan Education Products and then Money
  Management Counseling
• features free interactive tools students can use
  to manage money
• designed with input from financial aid
  professionals to meet student needs

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Features interactive courses

• Credit and Debt
• provides information on budgeting, credit, and
  student loans
• At the Bank
• helps students understand how banks and bank
  accounts work
• Home Finance
• teaches fundamentals of finding, renting and
  owning a home

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(No Transcript)
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Living within a budget
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Budgeting Workshop includes

• worksheet to outline needs, wants, expenses, and
  long-term goals
• budget calculators to compare income to expenses
  for
• current college students
• recent graduates
• full-time employees

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Budgeting Workshop
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Types of credit cards
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Your credit history
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At the Bank
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Checking accounts
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Keeping a checkbook
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Balancing your checkbook
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Choosing an account
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Choosing an account
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Home Finance
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Renting 101
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Why buy?
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Refinancing
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Take the quiz
each course features an interactive quiz to help
students review the course
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Interactive Quiz
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Interactive Quiz
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Interactive Quiz
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Completion certificate
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Money Management Counseling

• its free!
• its easy!
• visit www.nslp.org
• click on Loan Education Products and then Money
  Management Counseling
• the site will guide you through each course

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Questions?
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For more information
Bill Kohl Vice President of Operations P.O. Box
82507 Lincoln, NE 68501-2507 phone [phone],
ext. 6836 e-mail billk_at_nslp.org fax
402-479-6658 www.nslp.org
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