Debt Management Practices   Throughout the Borrower Lifecycle
<ul><li>Wanda Stover </li></ul><ul><li>North Carolina State Education Assistance Authority </li></ul><ul><li>Linda Viau </...
<ul><li>Part I </li></ul><ul><li>Historical Perspective </li></ul><ul><li>Linda L. Viau </li></ul><ul><li>Associate Direct...
Historical Perspective <ul><li>for years, holders of student loans focused their activities on effective default collectio...
Sequence of Events <ul><li>May 2001 - NCHELP’s Debt Management Committee developed a survey to determine some of the pract...
Sequence of Events (continued) <ul><li>intent was to identify “best practices” utilized within the industry (with measurem...
Sequence of Events (continued) <ul><li>survey initially sent to Subcommittee members as a trial </li></ul><ul><li>January ...
Components of the Survey <ul><li>all NCHELP members invited to respond </li></ul><ul><li>privacy maintained </li></ul><ul>...
Types of Activities Included <ul><li>high school outreach </li></ul><ul><li>counseling </li></ul><ul><li>communication met...
Borrower Life Cycles <ul><li>outreach </li></ul><ul><li>in school </li></ul><ul><li>grace </li></ul><ul><li>repayment </li...
End Users <ul><li>school </li></ul><ul><li>student </li></ul><ul><li>other organization </li></ul>
Part II Examples of Survey Responses
<ul><li>financial aid counselors and  co-sponsored programs </li></ul><ul><li>website </li></ul><ul><li>publications </li>...
<ul><ul><li>on-line calculator </li></ul></ul><ul><ul><li>on-line presentations </li></ul></ul><ul><ul><li>consumer credit...
<ul><li>web-based grace period information </li></ul><ul><li>early withdrawal counseling program  </li></ul><ul><li>skip t...
<ul><li>web-based repayment information </li></ul><ul><li>default prevention workshops   </li></ul><ul><li>on-line counsel...
<ul><li>counseling via telephone </li></ul><ul><li>claim aversion strategies </li></ul><ul><li>default management systems ...
<ul><li>Part III </li></ul><ul><li>Examples of Initiatives Developed by Nebraska, North Carolina, and Vermont </li></ul>
Presented by   Bill Kohl Vice President of Operations NSLP Money Management Counseling  for students
Money Management Counseling <ul><li>available at  www.nslp.org </li></ul><ul><li>click on  Loan Education Products  and th...
Features interactive courses <ul><li>Credit and Debt </li></ul><ul><li>provides information on budgeting, credit, and stud...
 
Living within a budget
Budgeting Workshop includes… <ul><li>worksheet to outline needs, wants, expenses, and long-term goals </li></ul><ul><li>bu...
Budgeting Workshop
Types of credit cards
Your credit history
At the Bank
Checking accounts
Keeping a checkbook
Balancing your checkbook
Choosing an account
Choosing an account
Home Finance
Renting 101
Why buy?
Refinancing
Take the quiz each course features an interactive quiz to help students review the course  Your credit rating The value of...
Interactive Quiz disclosure statement Credit statement APR comparison chart 2.  Credit cards are required to include a ___...
Interactive Quiz split APR prime rate sub-prime rates <ul><li>3. If you have a bad credit score, you may be limited  </li>...
Interactive Quiz a person who borrows on credit the individual or company who lends money on credit the company that keeps...
Completion certificate Certificate of Achievement This certifies that has successfully completed NSLP’s course, CREDIT AND...
<ul><li>it’s free! </li></ul><ul><li>it’s easy! </li></ul><ul><li>visit  www.nslp.org </li></ul><ul><ul><li>click on  Loan...
Questions?
For more information… Bill Kohl Vice President of Operations P.O. Box 82507 Lincoln, NE 68501-2507 phone 800-735-8778, ext...
Thank you for joining us. Please complete your conference evaluation form!
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  1. 1. Debt Management Practices Throughout the Borrower Lifecycle
  2. 2. <ul><li>Wanda Stover </li></ul><ul><li>North Carolina State Education Assistance Authority </li></ul><ul><li>Linda Viau </li></ul><ul><li>Vermont Student Assistance Corporation </li></ul><ul><li>Bill Kohl </li></ul><ul><li>National Student Loan Program </li></ul>
  3. 3. <ul><li>Part I </li></ul><ul><li>Historical Perspective </li></ul><ul><li>Linda L. Viau </li></ul><ul><li>Associate Director </li></ul><ul><li>Vermont Student Assistance Corporation </li></ul>
  4. 4. Historical Perspective <ul><li>for years, holders of student loans focused their activities on effective default collection strategies </li></ul><ul><li>over time, that focus has drastically changed to early intervention and default prevention </li></ul><ul><li>Why the switch? </li></ul><ul><ul><li>U.S. economic downturn </li></ul></ul><ul><ul><li>exacerbated by the events of September 11 th </li></ul></ul><ul><ul><li>tight job market </li></ul></ul><ul><ul><li>consumer credit crunch </li></ul></ul>
  5. 5. Sequence of Events <ul><li>May 2001 - NCHELP’s Debt Management Committee developed a survey to determine some of the practices being utilized by the industry </li></ul><ul><li>Summer of 2003 - the Debt Management Committee identified the need for additional information on industry practices </li></ul>
  6. 6. Sequence of Events (continued) <ul><li>intent was to identify “best practices” utilized within the industry (with measurements) and then share the results with its colleagues </li></ul><ul><li>FSA at ED was working on a similar project </li></ul><ul><li>Fall 2003 – Default Prevention Subcommittee of Debt Management Committee designs survey </li></ul>
  7. 7. Sequence of Events (continued) <ul><li>survey initially sent to Subcommittee members as a trial </li></ul><ul><li>January 2004 - NCHELP Board approves the use of the survey </li></ul><ul><li>March 2004 - survey was sent to all NCHELP members </li></ul><ul><li>Summer and Fall of 2004 - results tabulated and follow up completed </li></ul>
  8. 8. Components of the Survey <ul><li>all NCHELP members invited to respond </li></ul><ul><li>privacy maintained </li></ul><ul><li>activities listed and detailed with an indication of ‘where’ in the borrower lifecycle the activities would occur </li></ul><ul><li>matrices were developed for each NCHELP organization </li></ul><ul><ul><li>guaranty agency </li></ul></ul><ul><ul><li>lender/holder </li></ul></ul><ul><ul><li>third party servicer </li></ul></ul>
  9. 9. Types of Activities Included <ul><li>high school outreach </li></ul><ul><li>counseling </li></ul><ul><li>communication methods </li></ul><ul><li>financial planning </li></ul><ul><li>default prevention tools </li></ul><ul><li>training </li></ul><ul><li>research and development </li></ul><ul><li>technology </li></ul><ul><li>skip tracing </li></ul>
  10. 10. Borrower Life Cycles <ul><li>outreach </li></ul><ul><li>in school </li></ul><ul><li>grace </li></ul><ul><li>repayment </li></ul><ul><li>delinquency </li></ul>
  11. 11. End Users <ul><li>school </li></ul><ul><li>student </li></ul><ul><li>other organization </li></ul>
  12. 12. Part II Examples of Survey Responses
  13. 13. <ul><li>financial aid counselors and co-sponsored programs </li></ul><ul><li>website </li></ul><ul><li>publications </li></ul>Early Outreach Examples
  14. 14. <ul><ul><li>on-line calculator </li></ul></ul><ul><ul><li>on-line presentations </li></ul></ul><ul><ul><li>consumer credit counseling in schools </li></ul></ul>In-School Examples
  15. 15. <ul><li>web-based grace period information </li></ul><ul><li>early withdrawal counseling program </li></ul><ul><li>skip tracing </li></ul>Grace Period Examples
  16. 16. <ul><li>web-based repayment information </li></ul><ul><li>default prevention workshops </li></ul><ul><li>on-line counseling </li></ul>Repayment Examples
  17. 17. <ul><li>counseling via telephone </li></ul><ul><li>claim aversion strategies </li></ul><ul><li>default management systems </li></ul>Delinquency Examples
  18. 18. <ul><li>Part III </li></ul><ul><li>Examples of Initiatives Developed by Nebraska, North Carolina, and Vermont </li></ul>
  19. 19. Presented by Bill Kohl Vice President of Operations NSLP Money Management Counseling for students
  20. 20. Money Management Counseling <ul><li>available at www.nslp.org </li></ul><ul><li>click on Loan Education Products and then Money Management Counseling </li></ul><ul><li>features free interactive tools students can use to manage money </li></ul><ul><li>designed with input from financial aid professionals to meet student needs </li></ul>
  21. 21. Features interactive courses <ul><li>Credit and Debt </li></ul><ul><li>provides information on budgeting, credit, and student loans </li></ul><ul><li>At the Bank </li></ul><ul><li>helps students understand how banks and bank accounts work </li></ul><ul><li>Home Finance </li></ul><ul><li>teaches fundamentals of finding, renting and owning a home </li></ul>
  22. 23. Living within a budget
  23. 24. Budgeting Workshop includes… <ul><li>worksheet to outline needs, wants, expenses, and long-term goals </li></ul><ul><li>budget calculators to compare income to expenses for: </li></ul><ul><ul><li>current college students </li></ul></ul><ul><ul><li>recent graduates </li></ul></ul><ul><ul><li>full-time employees </li></ul></ul>
  24. 25. Budgeting Workshop
  25. 26. Types of credit cards
  26. 27. Your credit history
  27. 28. At the Bank
  28. 29. Checking accounts
  29. 30. Keeping a checkbook
  30. 31. Balancing your checkbook
  31. 32. Choosing an account
  32. 33. Choosing an account
  33. 34. Home Finance
  34. 35. Renting 101
  35. 36. Why buy?
  36. 37. Refinancing
  37. 38. Take the quiz each course features an interactive quiz to help students review the course Your credit rating The value of things you own Your FICO score 1. Your net worth is an assessment of: Take the Quiz Print this quiz
  38. 39. Interactive Quiz disclosure statement Credit statement APR comparison chart 2. Credit cards are required to include a _________ in their promotional materials. Take the Quiz Print this quiz
  39. 40. Interactive Quiz split APR prime rate sub-prime rates <ul><li>3. If you have a bad credit score, you may be limited </li></ul><ul><li>to loans with: </li></ul>Take the Quiz Print this quiz
  40. 41. Interactive Quiz a person who borrows on credit the individual or company who lends money on credit the company that keeps a record of credit history 4. A creditor is: Take the Quiz Print this quiz
  41. 42. Completion certificate Certificate of Achievement This certifies that has successfully completed NSLP’s course, CREDIT AND DEBT Congratulations!
  42. 43. <ul><li>it’s free! </li></ul><ul><li>it’s easy! </li></ul><ul><li>visit www.nslp.org </li></ul><ul><ul><li>click on Loan Education Products and then Money Management Counseling </li></ul></ul><ul><ul><li>the site will guide you through each course </li></ul></ul>Money Management Counseling
  43. 44. Questions?
  44. 45. For more information… Bill Kohl Vice President of Operations P.O. Box 82507 Lincoln, NE 68501-2507 phone 800-735-8778, ext. 6836 e-mail [email_address] fax 402-479-6658 www.nslp.org
  45. 46. Thank you for joining us. Please complete your conference evaluation form!
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