Default Prevention Initiatives


SLGFA Default Prevention Department
Our experienced and highly trained counselors diligently attempt to contact delinquent borrowers via phone, e-mail, or text messaging. Additionally, each delinquent borrower receives a letter that includes information on how to avoid default and encourages the borrower to contact SLGFA or their loan servicer.

Default Prevention Department 
SLGFA encourages institutions to utilize all resources provided by SLGFA, other servicers and the U.S. Department of Education to develop and implement a successful default prevention plan.

Monthly, SLGFA provides institutions with the Delinquent Borrowers by School File for loans guaranteed by SLGFA. This file is created in an Excel format that may be sorted in a variety of ways.  This versatility allows institutions to make borrower contact and positively affect their cohort default rate. The document definition for the school file may be found here.

Delinquency Letters
Statistics prove that student borrowers are more likely to open and respond to mail from an institution. SLGFA has taken a three-tired approach in the development of delinquency letters. Each tier is based on the number of days delinquent. The letter encourages the borrower to contact their loan holder or SLGFA’s Default Prevention Department to resolve the delinquency and the verbiage increases in urgency as the days of delinquency grow closer to default.

The delinquency letters are formatted to fit into a standard window envelope and may be adjusted to fit your institutional letterhead. The document definition and a sample of the letters may be found below:
                •  DP001 Document Definition and Sample Letter
                •  DP002 Document Definition and Sample Letter
                •  DP003 Document Definition and Sample Letter

Borrower Contact
The Delinquent Borrowers by School File also contains the borrower’s phone. In an effort to increase calling success, here are some helpful tips and a sample phone script to be used when assisting a borrower with delinquency resolution.

If you would like more information, please contact SLGFA College Access and Debt Management Advisor Bonnie Hartz, 800-622-3446, ext. 634.