1. The Truth about Defaults Matt Steiner Senior Operations Research Analyst, TG Kelly Kaelin Managing Editor, TG Joe Braxton Default Aversion Consultant, TG

2. Session objectives Clear up potential misunderstandings pertaining to default risks, causes, and statistics Provide attendees with information that they can use to: –Improve student counseling sessions –Enlighten their administration and default management teams –Develop policies and procedures that are compliant with federal regulations and best meet the needs of their campuses

3. Discussion item #1 Does a student decrease his or her risk of defaulting by progressing further into, but not completing, his or her program of study? And does borrowing more increase or lower the borrower’s risk of defaulting?

4. Discussion item #2 What are the default implications of working full time while in school?

5. Discussion item #3 Do borrowers with split loans (i.e., loans held by multiple loan holders) have higher default rates than those whose loans are held by one loan holder? If so, what are the implications to transfer students?

6. Discussion item #4 Which characteristics play a determining role in whether a student defaults?

7. Discussion item #5 What counseling approach is the most effective in preventing defaults?

8. Discussion item #6 When are students most likely to become delinquent and default?

9. Discussion item #7 Are subsidized Stafford or unsubsidized Stafford borrowers more likely to default?

10. Questions? This presentation is available for download at www.tgslc.org/tgconference.