Proactive “CDR” Cohort Default Rate Prevention

By Rick Moreno, Ph.D.

MORENO Educational Consulting Services

In order to manage your CDR(cohort default rate) it is a good idea to approach from both origination as well as repayment.Steps:1) Identify existing borrowers and assess level of indebtedness, educational status (excess hours, etc.)

2) Proactive financial literacy for first-time borrowers3) (This included Dept of Ed entrance counseling & any additional

literacy programs offered by TGSLC, etc.)

Proactive Default Management

Request your IT department to provide a listing of students:◦ who have student loans (renewal and first time

borrowers)◦ Demographic information to include

GPA SAP status Program level

Identify the borrowers

It is recommended that an analysis of borrowers by demographic such as program (major), academic level, EFC, as well as course load

Patterns may reveal additional need for providing specific financial literacy to particular groups (assistance in applying for scholarships rather than loan, etc.)

Analysis of Current Borrowers

Recommend having students attend a “Mandatory Money Management Orientation”

Recommend having a schedule of orientations (every other month with a morning/evening session) and a mandatory sign-in WITH a sign-in deadline

Recommend the student be REQUIRED to attend these EVERY year, not just an entrance and an exit.

Mandatory Entrance/Exit Money Management Orientations

In order to attend the Money Management Orientation, First-time borrowers must have:

PIN Social security number Driver’s License Attendees will be accessing two links and printing screens www.salliemae.com www.nslds.ed.gov

Required Documents to attend Orientation

Attendees will be shown how to navigate through both websites, then asked to navigate through both themselves and to print the websites (once logged in). Renewal students will be asked to print the summary of their loans in BOTH

websites to ensure they know how to access who owns and who is their servicer(s).

Money Management Orientation

Students are computer literate, but not process literate. By walking them through the loan process (aside from entrance and exit counseling) institutions are ensuring students know how to manage their student loans. It is a best practice to include step by step processes and to email these to the students who are borrowing funds, as the more these processes are communicated to students, the less likely they are to default.

SUMMARY

Thank You!

Rick Moreno, Ph.D. MORENO Educational Consulting Services www.morenoeducationalconsultingservices.com