1. Becky Powell-Default Aversion Coordinator Ann Isackson-Director of Financial Aid Grand Rapids Community College June 2015

2. * Draft Rate – Final Rate Available September 2015 YearStudents in Repayment Students in Default Cohort Default Rate 2008232045019.3% 2009257956521.9% 2010312581426% 20114270113126.4% 2012*5667140324.7%

3. 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. 2014-152013-142012-132011-122010-112009-102008-09 Applicants Awarded Loans 15,66617,65618,54818,99718,8007,2505,596 Disbursed Loans6,6617,8098,9989,2929,4236,4755,193 Loan Amount Totals $17.3M$20.7M$29.9M$30.9M$30.4M$17.5M$17.6M

5. Business & Finance Counseling Enrollment Mgmt. Financial Aid Institutional Research President’s Office Provost Student Affairs Student Records Student Success & Retention

6. 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. 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. Average Credits Attempted Average Credits Completed Average Cumulative GPA Average Course Completion Rate 34171.3937%

9. 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. 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. 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. 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. 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

15. http://ifap.ed.gov/docs/CallQRef.pdf http://ifap.ed.gov/DefaultPreventionResourceInfo/ https://financiallit.org/ https://www.creditcardinsider.com/learn/definitive -guide-student-loans/

16. 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