Default Prevention ___________________________________________________________________
What is student loan default? If a student loan borrower fails to make payments on a federal student loan and the account becomes 270 days delinquent, the loan becomes defaulted. When a loan has been placed in a default status, the entire balance is due to the guaranty agency. There are several consequences to having a defaulted student loan. The institution is also impacted by the calculation of the cohort default rate (CDR). Schools can lose eligibility for federal financial aid if they have a default rate of 30% or higher for three years in a row. Default Prevention and Managment The Office of Financial Aid offers several default prevention tools that provides guidance and assistance to our student loan borrowers, such as financial literacy courses/modules through iGrad, in-person loan exit counseling, financial coaching, and various outreach programs and events throughout the school year.
Students are required to complete exit counseling when they: 1) Drop below ½ time status 2) Graduate 3) Stopped Out (ceased attendance) 4) Withdraw from University
# OF STUDENTS WHO COMPLETED EXIT COUNSELING 2021-22
Financial Literacy + Student Loan Counseling + Outreach + Default Prevention = LOWER DEBT
Dropped Below Half Time, 55
Withdrew, 647
Graduated, 13
Stopped Out, 1393
Dropped Below Half Time Graduated Stopped Out
Withdrew
*** The exit counseling completion figures above is inclusive of those who may have been required to complete exit counseling in prior academic years.
2,108 students completed exit counseling during the 2021-22
1 2
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