1. Default Aversion – Progressive Steps Toward a Long-term Solution Becky Powell-Default Aversion Coordinator Ann Isackson-Director of Financial Aid Grand Rapids Community College

2. Cohort Default Rate History YearStudents in Repayment Students in Default Cohort Default Rate 2008232045019.3% 2009257956521.9% 2010312581426% 20114270113126.4% 20125671139924.6%

3. Our Contributing Factors Enrollment spike due to national recession and high unemployment rates in Michigan Lack of student preparedness, persistence and retention Limitations on the ability to deny loans to high risk borrowers Enrollment reporting errors Auto packaging student loans

4. Loan Awarding Overview 14-1513-1412-1311-1210-1109-1008-09 Applicants Awarded Loans 15,66617,65618,54818,99718,8007,2505,596 Disbursed Loans 6,6617,8098,9989,2929,4236,4755,193 Loan Amount Totals $17.3M$20.7M$29.9M$30.9M$30.4M$17.5M$17.6M

5. Cross-Divisional Default Management Team Business & Finance Counseling Enrollment Mgmt. Financial Aid Institutional Research President’s Office Provost Student Affairs Student Records Student Success & Retention Students

6. Initial Goals Designate personnel and resources necessary to develop default management plan Contract with a 3 rd party servicer for delinquency outreach and financial literacy Enhance enrollment retention efforts Analyze delinquent and defaulted borrower profiles

7. Delinquent Borrower Profile 85% were Pell eligible 52% had an EFC of 0 55% had a HS GPA of 2.49 or lower 38% were on academic probation 46% were Caucasian; 40% African American; 8% Hispanic; 1% Native American; 1% Asian; 4% not identified 93% did not complete their degree

8. Delinquent Borrower Profile Average Credits Attempted Average Credits Completed Average Cumulative GPA Average Course Completion Rate 34171.3937%

9. Default Management Strategies Develop a holistic approach which: Involves cross-campus collaboration Focuses on financial literacy Leverages support of 3 rd party servicer and default aversion coordinators Positions college as an ally, helping students make solid education-related financial decisions Includes layered communication and outreach at touch points throughout the student life cycle

10. Current and Future Initiatives New Student Outreach Develop CRM messaging to new and prospective students focused on paying for college and responsible borrowing; develop Paying for College microsite Incorporate financial literacy components into in-person and online orientation Build partnerships and create buy-in of faculty Introduce financial literacy into all first year experience courses

11. Current and Future Initiatives Returning Student Outreach Develop a student leader peer mentoring program Leverage texting and CRM software to deliver informational messaging to students At time of loan award and disbursements During SAP warning semester When student has attempted between 30 and 40 credits When student is nearing aggregate loan limits Integrate financial literacy materials into academic probation success workshop

12. Current and Future Initiatives Departing Student Outreach Identify and connect with students for whom return of funds calculations have been completed Provide loan counseling and repayment information at annual Gradfest event Pilot in-person exit loan counseling CRM and text messaging triggered by petitions to graduate, transcript requests, return following academic suspension

13. Current and Future Initiatives Delinquency Outreach Use of NSLDS reports to identify delinquent borrowers Contract with ASA $ALT for delinquency contact and resolution Develop process to ensure updated student contact information Additional phone, text, email and snail mail outreach by default aversion coordinators

14. Contact Us! Becky Powell Default Aversion Coordinator Grand Rapids Community College Phone: (616)234-3164 Email: rebeccapowell1@grcc.edu Ann Isackson Director of Financial Aid Grand Rapids Community College Phone: (616)234-4059 Email: aisackson@grcc.edu