Default Prevention Initiatives

Debt Management Team
The team assists schools by providing training, workshops, and on-site entrance and exit counseling sessions. Currently, the team is collecting data from schools in order to determine the type of training and workshop that best meets the needs of each institution.

Default Prevention Department
The department counselors actively pursue delinquent borrowers by utilizing the Borrower Pursuit System, averting numerous defaults and thereby assisting schools in lowering their default rates. A flier has been designed to enhance borrower contact. It explains deferments and forbearances and encourages borrowers to call the SLGFA Default Prevention Hotline.

Delinquent Borrower Report
This report is provided to schools and lists all former students who are delinquent on student loan payments.

Borrower Debt Management Report
This report is provided to schools and outlines individual borrower statements listing loan debt prior to graduation. Two postcards have also been made available: one mailed to borrowers immediately following graduation and one to mail to borrowers who are nearing the end of their grace period.

Mapping Your Future
SLGFA is a member of Mapping Your Future, which provides schools and students with Chat Night Events, early awareness information, career counseling, scholarship and loan locators, online entrance and exit counseling, and budget calculators. SLGFA also has Mapping Your Future's entrance and exit loan counseling leaflets available for schools to distribute to borrowers.

Early and Late Stage Delinquency
SLGFA offers schools Early Stage Delinquency (ESD) and Late Stage Delinquency (LSD) Reports and Early and Late Stage Delinquency Borrower Letters, which schools can receive through E-Reports.

The ESD and LSD reports make schools aware of the possibility of default and provides the school with contact information for the borrower. These reports can be used by the school to make phone contact with the borrower and to encourage the borrower to make payment arrangements to avoid default. In an effort to increase calling success, here are some helpful tips and a sample phone script that can be used by those schools choosing to take that extra step toward default prevention.

The ESD and LSD borrower letters allows schools to notify borrowers about the possibility of default, providing borrowers with the contact information of SLGFA's Default Prevention Department or their lender. Mail that is sent from the borrower's school is typically opened before mail sent from the loan holder. Therefore, schools that mail out the ESD and LSD letters can be quite successful in making contact with their delinquent borrowers.

ESD flags the borrower when he or she is 150 days delinquent while the LSD picks up the borrower when he or she is 270 days delinquent or about to default on his or her student loan.

If you would like more information, please contact SLGFA Default Prevention Coordinator Sandy Beaty, 800-622-3446, ext. 637.

Enhanced Website
Our website features a number of default prevention tools and tips to aid borrowers in understanding and managing their student loans.

U.S. Department of Education
The U.S. Department of Education published a sample default prevention and management plan that provides guidance for developing and implementing a comprehensive program for your institution.