1. UNCF ICB ACCREDITATION AND
STUDENT LOAN DEBT MANAGEMENT
INSTITUTE
D E F A U L T P R E V E N T I O N
B E S T P R A C T I C E S P R E S E N T E D B Y
A N T O N I O H O L L O W A Y ( H U S T O N - T I L L O T S O N )
A N D
V A L E N T I N O B R Y A N T ( S H A W U N I V E R S I T Y )

2. What is Default?
 Failure to repay a loan according to the terms and
conditions agreed upon when the borrower signed
the Master Promissory Note.
 Default occurs when the borrower becomes 360 days
delinquent with payments
 The consequences to the borrower and the
institution are severe.

3. Consequences of Default for Schools
High Cohort Default Rates can-
 Negatively reflect school quality
 Result in Provisional Certification
 Result in loss of Title IV eligibility
 Minimize access to Private Loans

4. Seven Reasons Students Default
 Entered Military Service
 Low Wages / Income
 Trouble With Personal Relationships
 Unemployed
 High Medical Bills
 Married Someone With High Student Loan Debt
 Lack of Knowledge

5. What Huston-Tillotson University Have
Implemented to Lower Default Rates
(In-School Efforts)
Enhanced Entrance Counseling
Provide Financial Literacy and Scholarship Workshops
Complete in-school deferment forms for prior loans
Explain Satisfactory Academic Progress (SAP)
Encourage students to pay accrued interest while in school
Require Financial Literacy for all freshmen and transfers
In-person exit interview for official withdrawals

6. Withdrawn Students Efforts
 Encourage student to re-enroll
 Implement a withdrawal process where student
must see a retention officer
 In-person exit interview for official withdrawals
 Mail exit package to unofficial withdrawals
 Use servicer to mail grace letters
 Use servicer to contact borrowers that withdraw
and become delinquent on loans

7. Grad Student Efforts
 Require in-person exit counseling for graduates
 Require financial literacy for graduates
 Use servicer to mail grace letters
 Use servicer to contact graduates that become
delinquent on student loans
 Provide institution contact information to all
graduates

8. Partner With External Agencies
 Collaborate with outside agency on writing a default
prevention plan (TG assist Huston-Tillotson)
 Seek grant opportunities to help defray the costs for
equipment, workshops, and additional employees,
etc. (Huston-Tillotson received $100,000.00 from
USA Funds)

9. What Shaw University Have Implemented to
Lower Default Rates
2009:
30.2%
2010:
19%

10. Three Phase Approach
“Where Are We?”
and “How Did We
Get Here?”
Strategic
Implementation
Operation Default
Rate Reduction
Creation of Default
Prevention /
Retention
Committee

11. “Where Are We?” and “How Did We Get Here?”
 We worked with the Office of Strategic Planning
Institutional Research & Effectiveness (OSPIRE)
 Based on 2009 2 year Draft Rate (23.1%)
 233 Student Defaulted
 183 Withdrawals
 49% Freshmen; 29% Sophomore; 13% Junior; 14% Seniors and 1%
Grad Students
 Low Retention Rate = High Default Rate and High
Retention Rate = Low Default Rate

12. Creation of Default Prevention/Retention
Committee
Default
Prevention
Financial Aid
Admission
First Year
Program
OSPIRE
Academic
Success
Vice
President of
Student and
Academic
Affairs
Creates
across-the-
institution
“BUY-IN”
Ensures
default
prevention
goals and
plans are met
Helps justify
additional
resources if
needed
Analyze data,
resources and
current
practices

13. Stopping the Monument
 Adjusted two staff
members work hours
 Monthly phone Blitz (one
night a month all FA
counselors stay late to
make calls to delinquent
borrowers)
 Mass mailing via USPS
and emails
 Social Media
Strategic Implementation Operation Default Rate
Reduction: Phase I

14. Student Outreach Faculty/Staff Outreach
 New Student Orientation
 Breakout sessions for parents and
incoming freshmen
 Early Alert System
 During Freshmen Orientation,
students complete an online survey,
which allows the university to identify
potential At-Risk Students
 Monthly Newsletters
 Financial Literacy Workshops
 Implementation of USA Funds
Life Skills
 Development of Student Peer
Financial Literacy Mentors
 Monthly Newsletters
 Attend Faculty Meetings
once per semester
 To promote Default
Awareness
 Partnered with some
faculty members who
allowed us to participate
in their class discussions
about Financial Literacy
Strategic Implementation; Phase II: Financial
Literacy/Awareness

15. Contact Information
Valentino Bryant
Shaw University
Default Prevention Administrator
919-546-8434
vbryant@shawu.edu
Antonio Holloway
Huston-Tillotson University
Director Financial Aid
512-505-3031
aholloway@htu.edu