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Cohort Default Rates -3YR over 30%

Cohort Default Rates -3YR over 30%. Notification, Reports, Timeframes, Default Management Plans. History of NPCC CDR Rates. NPCC FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY11 2-Yr CDR 7.6 13 18.5 16.1 18.8 23 23.3 3-Yr CDR 31.8 30.9 28.8P

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Cohort Default Rates -3YR over 30%

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  1. Cohort Default Rates -3YR over 30% Notification, Reports, Timeframes, Default Management Plans

  2. History of NPCC CDR Rates • NPCCFY2005FY2006FY2007FY2008FY2009FY2010 FY11 • 2-Yr CDR 7.6 1318.516.118.823 23.3 • 3-Yr CDR31.8 30.9 28.8P • P-Projected using most recent school portfolio report from NSLDS • 2009 Trial 3 year CDRs and the dates received: 24.7% (4/14/2011); 25.8% (10/30/2009); 20% (10/29/2009); and 10.5% (10/29/2009)

  3. Draft 3 Yr CDR • Through SAIG mailbox you get shdrlrop file • UNITED STATES DEPARTMENT OF EDUCATION • WASHINGTON, D.C. 20202 • FEBRUARY 2012 • National Park Community College OPE ID: 012105 • 101 College Drive FY 2009 Draft 3 Year Cohort 31.8 • Hot Springs, AR 71913-9174 Default Rate: • SUBJECT: FISCAL YEAR 2009 DRAFT 3 YEAR COHORT DEFAULT RATE • Dear President: • I am writing to provide you with your school's fiscal year (FY) 2009 draft • three-year cohort default rate (CDR) data. For domestic schools, and • foreign schools that have one or more borrowers that entered into repayment • during the FY 2009 period, the accompanying loan record detail report • (LRDR) includes information on the loans made to students for attendance at • your school under the Federal Family Education Loan (FFEL) Program and/or • William D. Ford Federal Direct Loan (Direct Loan) Program. The U.S. • Department of Education's (Department) records indicate that all of the • loans included in the report entered into repayment during the FY 2009 • period that includes October 1, 2009 through September 30, 2009. • If you have questions about accessing or printing your file, please contact • Operations Performance Division at (202) 377-4259 or via email at • fsa.schools.default.management@ed.gov. • The most important link on the DPM website • (http://www.ifap.ed.gov/DefaultManagement/DefaultManagement.html) is the • link to the Cohort Default Rate Guide. This Guide is a primary reference • source for schools to understand the cohort default rates and processes. • You may download the Guide in its entirety or by specific chapters needed.

  4. Draft 3 Yr CDR (continued) • The National Student Loan Data System (NSLDS) has been modified to • calculate the CDR using a three-year default monitoring period. Schools • will receive no sanctions or benefits for the first three-year rate issued • in the FY 2009 cohort period. To assist schools in verifying the accuracy • of the LRDR, updates have been made to the report's header, detail and • trailer records. The updated extract file layout for the DRC035 report is • available on the NSLDS Record Layouts page of the Information for • Financial Aid Professionals (IFAP) Website at http://www.ifap.ed.gov. • Operations Performance Division has added other resources to our website. • They are: • Archived Press Packages - Press packages from 1992 to 2008 that give cohort • default rates for the year of the press package and the two prior years. • Link to new eCDR Appeals - The eCDR Appeals system is a Web-based • application that facilitates the exchange of information between parties • for three of the challenge/adjustment processes. • Please plan to visit our website and let us know what you think about it. • If you have any suggestions on improvements/additions to the website, • please let us know via fsa.schools.default.management@ed.gov. • Operations Performance Division staff offer the eCDR Appeals system, a web- • based solution to automate the submission of certain CDR challenges and • adjustments requests. Schools must submit their Incorrect Data challenge, • Uncorrected Data Adjustment and New Data Adjustment requests via eCDR • Appeals. The application allows schools to electronically submit these • challenges and adjustments requests during the cohort default rate cycle, • and allows data managers and Federal Student Aid (FSA) to electronically • view and respond to these challenges and adjustments requests.

  5. Draft 3 Yr CDR (continued) • It is important that schools implement data corrections prior to the • calculation of the FY 2009 three-year official cohort default rates • scheduled for later this year. Chapter 4.1 of the Cohort Default Rate Guide • explains the Incorrect Data Challenge process timeline that a school should • use to identify and correct any inaccuracies reflected in the enclosed • LRDR. • Your school has 45 calendar days to challenge the accuracy of the FY 2009 • three-year LRDR. If your school does not submit the challenge(s) within the • required timeframes, your school will forfeit its right to submit such • challenge(s). School's timeframe to submit challenges begins with the sixth • business day following the announced transmission date for eCDR packages • posted to http://www.ifap.ed.gov. • The Department will not release your school's FY 2009 draft three-year • cohort default rate to the public. It is important to note that your school • may not use its FY 2009 draft cohort default rate to determine if it is • eligible for any disbursement exemptions. Corrected data received through • the Incorrect Data Challenge process and from other sources will be used by • the Department to calculate the FY 2009 official three-year cohort default • rates in the fall. At that time, the Department will notify your school of • its official rate, and additional adjustment/appeal rights that may be • available to your school.

  6. Draft 3 Yr CDR (continued) • If you have any questions about the FY 2009 draft three-year school cohort • default rate review process that are not addressed in the Cohort Default • Rate Guide, please contact Operations Performance Division at (202) 377- • 4259 or via email at fsa.schools.default.management@ed.gov. • Sincerely, • Katrina Turner • Director • Operations Performance Management Services • Special note for schools with 29 or fewer borrowers entering repayment for • the FY 2009 period: Please refer to page 2 of the Cohort Default Rate • Guide for information regarding the average rate formula and calculation.

  7. Analyze Your Loan Detail Record -SHCDRROP • EDUCATION RATE CALCULATION DATE: 02/12/2012 • NATIONAL STUDENT LOAN DATA SYSTEM (NSLDS) PAGE NO: 1 • COHORT YEAR 2009 3YR DRAFT LOAN RECORD DETAIL REPORT (SCHOOL) • ATTENTION: SYSTEM CREATED ORGANIZATION ID NUMBER: 01210500 • NAME: NATIONAL PARK COMMUNITY COLLEGE • ADDRESS: 101 COLLEGE DRIVE • CITY: HOT SPRINGS STATE: AR • COUNTRY: POSTAL CODE: 71913-9174 RATE TYPE: F; SUB TYPE: P YEARS: 1 • ---------------------------------------- STUDENT ----------------------------------------- ORIG SCH - ------- CLASS ----- ACADEMIC • SSN LAST NAME FIRST/M.I. D.O.B / IND BEGIN DATE END DATE LEVEL • ----------- ----------------------------------- ------------- ---------- -------- - ---------- ---------- - • LENDER/HOLDER ------- LOAN ------- CLAIM RSN/ DEFAULT/ GUARANTOR GUARANTY ENROLLMENT STAT USAGE • CURRENT TYPE STAT DATE CODE NEGAM DATE REPAY DATE AMOUNT /SERVICER LOAN DATE CODE DATE 1 2 • ---------- -- -- ---------- -- ---------- ---------- -------- ----- ---------- - ---------- -

  8. Get to Know the Codes • XXX-XX-XXXX DZIEDZIC JACQUELINE A 11/14/1983 01210500 N 08/21/2008 05/12/2009 1 • 899577 SF DU 01/09/2011 DF 01/09/2011 09/15/2009 $ 3,500 580 09/17/2008 W 05/12/2009 B FB • XXX-XX-XXXX DZIEDZIC JACQUELINE A 11/14/1983 01210500 N 08/21/2008 05/12/2009 1 • 899577 SU DU 01/09/2011 DF 01/09/2011 09/15/2009 $ 6,000 580 09/17/2008 W 05/12/2009 E E • XXX-XX-XXXX DZIEDZIC JACQUELINE A 11/14/1983 01210500 N 01/15/2009 05/12/2009 1 • 899577 SU DU 01/09/2011 DF 01/09/2011 09/15/2009 $ 2,222 580 01/06/2009 W 05/12/2009 E E • DEFAULT RATE USAGE 1: D = DENOMINATOR, B = NUMERATOR/DENOMINATOR, N = NOT USED, E = ELIGIBLE BUT NOT COUNTED • DEFAULT RATE USAGE 2: FD = FFEL DENOMINATOR, FB=FFEL NUMERATOR/DENOMINATOR, DD = DIRECT DENOMINATOR,DB=DIRECT NUMERATOR/DENOMINATOR, • IC = ICR (NEGATIVE AMORTIZATION ONLY), N = NOT USED, E = ELIGIBLE BUT NOT COUNTED • INFORMATION PROTECTED BY THE PRIVACY ACT OF 1974 AS AMENDED

  9. Read to Bottom of Report • TOTAL DOLLARS IN DEFAULT : 896,596 0 0 (BASED ON OUTSTANDING PRINCIPLE BALANCE) • TOTAL DOLLARS IN REPAYMENT : 2,652,755 0 0 (BASED ON OUTSTANDING PRINCIPLE BALANCE) • TOTAL INSURANCE CLAIM PAYMENTS: • ************* = NOT AVAILABLE • ACTUAL NUMERATOR COUNT : 115 REPORT COUNT : 115(B USAGE 1 CODES ONLY) • ACTUAL DENOMINATOR COUNT: 361 ACTUAL DEFAULT RATE: 31.8 REPORT COUNT : 361(D & B USAGE 1 CODES) • INDIVIDUAL PROGRAM TALLY: FFEL: 115/361 DIRECT: 0/0 • APPEALED RATE FLAG: N (D=DIRECT, I=INDIRECT, N=NO APPEAL, U=UNKNOWN) IC: (NEGATIVE AMORTIZATION ONLY) • END OF LOAN RECORD DETAIL REPORT REPORT GENERATION DATE: 03/03/12 • DEFAULT RATE USAGE 1: D = DENOMINATOR, B = NUMERATOR/DENOMINATOR, N = NOT USED, E = ELIGIBLE BUT NOT COUNTED • DEFAULT RATE USAGE 2: FD = FFEL DENOMINATOR, FB=FFEL NUMERATOR/DENOMINATOR, DD = DIRECT DENOMINATOR,DB=DIRECT NUMERATOR/DENOMINATOR, • IC = ICR (NEGATIVE AMORTIZATION ONLY), N = NOT USED, E = ELIGIBLE BUT NOT COUNTED

  10. Review of Timeframes • First thing you need to get a handle on is the timeframes of when all of this is happening • 2010 3 yr CDRs are for students who went into repayment between 10/1/2009 and 9/30/2010 and defaulted between 10/1/2009 and 9/30/2012 • When you get those rates March, 2013 (draft) • Too late to help 2010, only have March 2013-September 2013 (6 months) to try to save 2011 and only until September 2014 to try to save 2012 (18 months)

  11. By the Time You Get a Draft CDR • Year 1- past by 6 months • Year 2- 6 months to try to save • Year 3- 18 months to try to save NPCC found out March 2012 we were over 30% on 3 YR CDR for 2009. Three months to figure out reports and tried to contact students ourselves. By July, 2012 we hired 3rd party to help contacting delinquent students.

  12. Procedural Changes at NPCC • Increased requirements for loan recipients: in-person loan seminars and worksheets • Prorated budgets for less than full time students so loans are reduced for part-time • Tightening of Satisfactory Academic Policy and Appeals –fewer students approved • Reporting issues with NSLDS- National Student Loan Data System has been corrected • Campus-wide push to withdraw students not attending • Loans now disbursed 66% at 30th calendar day of term and 34% held until 60th day • Hired 3rd party to work late stage delinquencies • 2010 3 yr CDR rate will be formally appealed after draft rate revealed March, 2013 • Hired consultant to help guide us in formal appeal • Financial aid staff have called those already defaulted to rehab for 2011 and have been calling delinquency list folks • Students are now being dropped for nonpayment working to reduce Accts Receivable

  13. Default Management Plan Required • Q. My school has a 3-year cohort default rate over 30 percent, will this affect my school?A. Yes, if your school has 30 or more borrowers, and has a 3-year cohort default rate that is equal to or greater than 30 percent it must establish a default prevention task force. This task force must prepare a plan to identify the factors causing the school’s cohort default rate to exceed 30 percent and submit to the Department for review. In addition, schools with cohort default rates of 30 percent or greater for two consecutive years will have to revise their plans to implement additional procedures and also could be subject to provisional certification. In the year 2014, schools that meet certain criteria will become subject to sanctions as a result of the 3-year cohort default rates. For more information please read 34 CFR Section 668.21 and 7 and Chapter 2.4 of the Cohort Default Rate Guide. Please contact defaultpreventionassistance@ed.gov for assistance

  14. Default Prevention Task Force • Members • Director of Financial Aid (Committee Chair), Vice President for Financial Affairs, Director of Student Affairs, Director of Online Learning, Default Prevention Coordinator (Committee Secretary), Faculty Business Division (former assessment officer), Director of Career Services, Institutional Research Analyst, Practical Nursing Program Director (faculty). • This group has met and has begun to formulate a four-prong approach that will address (A) Retention Strategies, (B) Financial Literacy/Awareness for all constituents of National Park Community College, (C) Debt Management for NPCC students who apply for and receive student loans, and (D) Default Management for NPCC Alumni who have borrowed student loans.

  15. Default Prevention Plan Requirements • Default Prevention Plan Submission Overview For Schools with 3-Year Cohort Default Rate 30% or Greater Posted September 2012 • Background • Under Section 435(a)(7) of the HEA, an institution that has a 3-Year Cohort Default Rate of 30 percent or greater for any one federal fiscal year is required to establish a Default Prevention Task Force to reduce defaults and prevent the loss of institutional eligibility. • Preparing a Default Prevention Plan • The HEA’s implementing regulations at 34 CFR 668.217 require that a school’s Default Prevention Task Force create a program of default prevention and submit a written Default Prevention Plan to the Department of Education (the Department). • A school’s Default Prevention Plan must: • • Identify the factors causing the default rate to exceed the threshold • • Establish measureable objectives and the steps the institution will take to improve its cohort default rate • • Specify the actions the institution will take to improve student loan repayment • Plan • Plan Submission Deadline and Assistance • Default Prevention Plans should be submitted to the Department by November 30, 2012 via e-mail to defaultpreventionassistance@ed.gov. • If a school would like assistance in developing or reviewing its Default Prevention Plan, it may send an e-mail request to defaultpreventionassistance@ed.gov that includes the name, phone number, and e-mail address of a contact person at the school. • Additionally, we encourage schools to visit our Default Prevention Resource Information page on the Information for Financial Aid Professionals (IFAP) Web site. This page consolidates delinquency and default prevention resources in one location.

  16. Background • National Park Community College • Default Management Plan • 2012-2013 • Background • Students attending National Park Community College (NPCC) rely very heavily on financial aid. Over 70% of our students receive some form of Title IV federal aid the past three years. During the 2010-2011 Academic Year, NPCC awarded over $18 million dollars in Federal Financial Aid (Pell Grant, SEOG, FWS, ACG). Over this same period of time, NPCC students received over $10 million dollars in loans (Federal Direct Subsidized, Federal Direct Unsubsidized, and Federal Direct PLUS). While the awarding of these grants and loans provides NPCC students tremendous access to educational pathways, the large amount of student loan debt that is being accumulated could result in NPCC’s Cohort Default Rate (CDR) rising to the point in which our eligibility for receiving Federal Financial Aid could be revoked. • The CDR is the percentage of a school’s borrowers who enter repayment on student loans during a federal fiscal year (October 1 to September 30) and default prior to the end of the next two federal fiscal years. The first official 3-year CDR was generated for the FY2009 cohort in September/October, 2012, while the first “draft” rate was available in March 2012. The concern is that if the school stays at 30% or higher for two more consecutive years, they risk the loss of eligibility for all Federal Grants, Loans, and Work Study.

  17. Current Approach • The Financial Aid Director (FA Director) and Vice President of Financial Affairs (VPFA) have identified a multi-discipline membership for a Default Management Task Force (DMTF) and it has been assembled one time May 14, 2012 and a second time on August 29th, 2012 to review the draft of the Default Management Plan and discuss likely effectiveness of the elements of the plan. • DMTF Purpose and Objective: • The purpose of the Task Force is to assist in analysis, advice, and suggestions for lowering the Cohort Default Rate (CDR), assist in garnering college wide awareness and support to improve/change college policies and procedures with recommendations to Administrative Team. • The Task Force will be responsible for developing a Default Management Plan for National Park Community College. They will be responsible for implementation, evaluation and modification of the plan based on data analysis of NPCC Financial Aid statistics. The goal is to decrease the current default rate below the identified federal threshold, provide practices and protocols for financial aid awarding and disbursement at NPCC, align with Federal Compliance, provide resources to students for financial literacy, and increase awareness college- wide of the default plan and financial aid protocol.

  18. Data Analysis • In March 2012, the financial aid staff researched the FY2009 3-Year CDR to review the defaulters and determine which students were defaulting. The following are the characteristics of the FY2009 2-Year defaulters (115 defaulters in the cohort of 361 students in repayment): • 75.8% owed < $10,000 at NPCC • 67% owed < $10,000 in total at all institutions • 77% are Independent students (as determined by the Free Application for Federal Student Aid or FAFSA) • 65% were born 1980 or later • 57% had a last enrollment status of “Withdrawn” or unofficially withdrew • 88.5% did not graduate • 41% had below a 2.00 CGPA • 25.6% had at least one remedial class • Majors which account for large % of defaulters (44%) • ASN(Nursing)(13%) • AA (Associate of Arts)(11%) • ALS(Associate of Liberal Studies)(10%) • TC Practical Nursing (10%) • General analysis of the data shows that the primary problem is related to retention – students only attend a few semesters with 84.5% of the defaulters having withdrawn one or more semesters. Without obtaining an academic credential students then have difficulty obtaining better employment and have trouble repaying their loans. • Also recent studies have shown that students who default have deficiencies in financial literacy and debt management skills. All of these areas are going to be strengthened by providing more financial literacy to current students and debt management information to current and former students who are alumni of NPCC.

  19. Retention Strategies • Strategies and Efforts • Based on the changes and the increase of the 2-Year CDR and with the introduction of the 3-Year CDR per Federal Regulations, the Financial Aid Office at NPCC has implemented the following: • Retention Strategies (Timeline – Fall 2012/Spring 2013) • The college is embarking on an ambitious plan to strengthen the retention of its students. Policies and procedures are being added, revised or enhanced to increase the current NPCC retention rate. Although the strategies for retention are not based on the Financial Aid Cohort Default Rate, per Federal Guidelines, NPCC is recommending the guidance goes beyond financial aid processes and will be integrating retention strategies to address the whole student. Addressing the student in multiple areas of admissions and enrollment processes, academic achievement, and financial responsibility will add additional depth to this plan. • PACE grant changes for Math placing all students below 16 ACT in math, with a major in a technical field, in the Foundations of Technical Math course; if in nontechnical degree, 19 ACT in math or below, student is enrolled in Foundations of College Math 1A. • Review and revise (if needed) the “No show”, “Drop”, and “Withdrawal” policies. • Training for faculty and staff on cohort default rate. • Cohort default rate management plan. • Strengthen College wide (Early Alert System).

  20. Financial Literacy Strategies • Financial Literacy/Awareness for all constituents of National Park Community College(Timeline – Fall 2012/Spring 2013) • This will be a broad sweeping initiative outreaching all constituents at NPCC, faculty, staff and students. Outreach programs will be designed around curriculum opportunities, workshops, financial literacy TV, portal enhancements, guest lecturers and other resources as identified. The Task Force will engage Student Life, Student Organizations, Faculty and Staff in order to reach the most members of campus. The goal will be to bring the issue of Financial Literacy to the forefront and provide our college community with avenues for them to be able to learn and incorporate strategies to becoming financially healthy. • Student Outreach • Financial Literacy courses available for all students through third party software • College Goal Sunday- March, 2013 • FAFSA Workshops ( Financial Aid 911 week) • Student Orientation including more financial literacy information • Improve mentoring program –financial aid staff more involved • Faculty outreach • Financial Aid Facebook postings and emails campus-wide • Attend Division Meetings once every fall semester • Default awareness • Change in withdrawal policy- focus on attendance • Staff awareness • Financial Aid Facebook postings and emails campus-wide • Attend department meetings once every fall semester

  21. Debt Management Strategies-Current Students • Debt Management for NPCC students who apply for and receive student loans(Timeline – Fall 2012/Spring 2013) • The overriding belief is that this needs to be comprehensive, individualized and structured to provide accurate information and initiate a pathway for student financial awareness and success. Implementing requirements at NPCC for all student loans recipients, communicating the process and holding students accountable for their financial debt are critical. Student intervention, prevention and coaching strategies will be included which will involve increased staff time at the onset. But the intent is the long term relationship that will be established, an increase in student learning, accountability, and lower student loan debt, and ultimately an acceptable and manageable cohort default rate. • Enhanced Entrance Loan Counseling • All loan recipients (new and returning) of National Park Community College are required to attend an in-person Loan Counseling Seminar session. • Fall 2012 all NPCC Financial Aid students will be required to turn in a Federal Direct Loan Worksheet which utilizes some of the training they received in the seminar regarding NSLDS loan debt and monthly repayment amounts, careers and the entry level salaries in Arkansas annually and monthly, and reason the loan is being requested to review for allowable educational expenses. • Collect additional contact/reference information (physical addresses, telephone numbers, email addresses, social networking sites, etc.). • Make available to all students financial literacy courses offered by third party. • Student Loan Processes • The FA Office will offer loans based on COA which are prorated based on enrollment. • Students must accept the loans on the PeopleSoft OASIS student portal. • Students who decline loans initially must complete a loan application form with additional information to receive a loan after an initial denial decision.

  22. Debt Management Strategies-Current Students (continued) • At-risk Students • The Default Prevention Coordinator will obtain lists of all students on delinquency list and then contact them to set up a meeting with the student to discuss their current loan debt, repayment obligations, repayment options, etc. • The Default Prevention Coordinator will obtain lists of students identified by the Early Alert System, identify student loan borrowers, and contact them to set up a meeting to discuss their current loan debt, repayment obligations and options. • The FA Director who responsible for completing Return of Title IV Funds (R2T4) calculations will modify the letter that is sent to each R2T4 student to include verbiage that if they had student loans they should make an appointment with the Default Prevention Coordinator to discuss their current loan debt, repayment obligations, repayment options, etc. • Reduce or Deny Student Loans on a Case-By-Case Basis • In accordance with the Higher Education Act [Amd. 1998 – Title IV, Part F, Section 479A(c)] [Code of Federal Regulations: 34 CFR 682.603(e)] a school may refuse to certify a loan (or a portion of a loan) if the reason is documented and provided to the student in writing. As part of NPCC’s default management effort staff will review every federal direct loan worksheet individually and review all relevant criteria including but not limited to planned use of the loan funds, debt ratio, academic progress, and educational goal. If a student loan is reduced or denied we will provide a written notification to the student with the reason(s) included. The student will be referred to the Default Prevention Coordinator for intervention.

  23. Debt Management Strategies-NPCC Alumni With Loans • Default Management for NPCC Alumni who have borrowed student loans (Timeline – Spring/Fall 2012) • Students who graduate or leave NPCC (i.e. alumni) are responsible for repaying their incurred student loans 6 months past the last date of attendance. The assumption that students are aware of their options for repayment and have a thorough understanding of their financial obligations may be unrealistic. Therefore the College must continue proactive interventions to assist the alumni in their financial responsibility. • Internal processes • The Default Prevention Coordinator (with assistance from the Loan Officer and other part time staff) will contact students on the list of graduates provided by the Registrar’s office who have student loans to ensure they received their packet of information and to recommend they set up an appointment to discuss their current loan debt, repayment obligations, repayment options, etc. • The FA Office will access and utilize reports from the National Student Loan Database System (NSLDS) such as Delinquent Borrower Reports, Date Entered Repayment Reports, etc. on a monthly basis. • The FA Office will receive, review and challenge the draft default rate data using the Loan Record Detail Report (LRDR) and work with servicers for corrections. • The FA Office will work with borrower delinquency reports from loan servicers and assist them with skip tracing, if necessary, utilizing the additional contact information received at Entrance Loan Counseling and other data collection points newly established at NPCC. • The FA Office will assist potential NPCC graduates to prepare for financial repayment responsibility by offering Exit Loan Counseling sessions, in person counseling with Default Prevention Coordinator or staff, and third party’s financial literacy modules. • The Graduation Survey will be modified to include the question about whether or not the student would like loan counseling follow up from the financial aid office and will mention the requirement that they complete Exit Loan Counseling. • External resources • Third party delinquency assistance • NPCC implemented an agreement with Inceptia (NSLP) Repayment Outreach (out-come based) July, 2012 for the 2010, 2011, 2012 cohort default years and has plans to begin grace period counseling at some point in the future. • Their services/responsibilities are to provide additional contacting of delinquent borrowers beyond the standard requirements for the students in their portfolio as well as students in other student loan servicers (such as Sallie Mae, ACS and Great lakes) portfolios. • Department of Education’s Default Prevention Team -Contacted the Department of Education’s Default Prevention Team for default prevention assistance.

  24. Processes/Efforts with Direct Impact • Fall 2012 – Required attendance in Loan Counseling Seminar for all NPCC loan applicants. • Fall 2012- All loan applicants must submit Federal Direct Loan Worksheet. This form requires the student to identify their career goals and attach proof of expected entry level salary/monthly salary, current and projected student loan debt with monthly repayment amounts projected for both with attached NSLDS printout, and the reason the student needs the loan and what it will be used for (to be reviewed for educational expenses allowed). • Fall 2012 – Cost of Attendance budget components for tuition, fees, books, and transportation are being prorated based on level of enrollment. • 2011-12-13- Satisfactory Academic Progress policy has been made more stringent each year with students with all F’s and or W’s no longer being allowed to appeal without documented death in the family or medical reasons. Financial aid appeals processes have been strengthened and the committee makeup has been changed from the financial aid staff/counselors/VP for Student Services to the 1st level appeals committee being comprised of the Vice President of Financial Affairs, Director of Financial Aid, Assistant Director of Financial Aid, Financial Aid Coordinator, and Default Prevention Coordinator and 2nd level Faculty and Staff unrelated to financial aid or student services areas. • Spring, 2012- Staff member reassigned duties as full time Default Prevention Coordinator (plus 1-2 part time staff) assisting in making calls to all students who have withdrawn, graduated or are on delinquency lists. • Fall 2012- loans are being disbursed in two disbursements for fall and two for spring for all students, approximately 30 days (2/3 disbursed) then at approximately 60 days (1/3 disbursed).

  25. Processes/Efforts with Direct Impact • Fall 2012 website being updated to include section on student loan information with links to related websites. • Fall 2012 enrollment reporting to the National Student Loan Clearinghouse has been improved and will be reported every 45 days rather than every 60 days as required minimally. • July 2012 – Contracted with third party for delinquencies – utilized to contact students with student loans in delinquent status for NPCC borrowers with all other direct loan servicers (such as Sallie Mae, ACS, Nelnet, and Great Lakes) above the required contacts required by federal regulations. • July 2011- Pilot Program with guarantor in Arkansas: • Sending series of 3 letters and making phone calls to delinquent FFEL borrowers for NPCC • Performing skip-tracing on delinquent borrowers on behalf of NPCC all the way to 360 days delinquent • Spring 2012- Added R2T4 list to be contacted by Default Prevention Coordinator or assistants for prevention intervention. • Spring 2012-Added needing updated contact information on Financial Aid Appeals form in the FA Office. • Spring 2012- Executive Vice President for Academic Affairs and Director of On-line Learning have started making requests of faculty both full time and part time regarding withdrawing for students who are not attending prior to the important dates each term to make sure and withdraw students who are no longer attending classes so that no loans will be paid to students not attending classes. Improvements are being made but are still needed in this area. 

  26. Processes/Efforts with Indirect Impact • Research is being done on the number of students withdrawing or defaulting who are in predominately on-line coursework. • Transfer student’s transcripts – an automated way of reviewing of the last semester of coursework prior to enrolling at NPCC is being investigated for denial of aid eligibility that is consistent with non-transfer students. • Fall 2012-Reinstated Drop for Non-Payment. • Fall 2011-12- Financial Aid Coordinator increased communications with students, faculty and staff concerning financial aid changes, policies, information concerning loan requirements, including setting up a Facebook page, emails to students, and mailing of letters. • Spring 2012- asked counseling staff to give form to students asking for updated addresses and contact information as they enroll for courses. • Spring 2012-Registration closes on Friday before first day of semester classes. • Spring 2012- All graduates of NPCC (listed provided from Registrar’s office) are being surveyed and asked if they have done their exit counseling procedures and asked if they would like financial aid staff to contact them for more information on what they can do to successfully repay their loans. • Fall 2012 – Campus-wide communication increasing. FA Director will attend the first academic division meeting each fall to describe the CDR and the potential impact on the college. President will also address the CDR impact at the fall faculty/staff workshop day, where it is requested that all employees to attend including adjunct faculty.

  27. Timeframe/Review and Modifications Timeframe • This Default Prevention Plan will be communicated to the President and Administrative team for them to review, distribute as they see fit, and then return any comments, suggestions, questions or concerns to the Task Force. The Task Force will continue planning and implementation in order to meet the various timelines identified above. Review and Modifications • It will be the responsibility of the FA Director and Default Prevention Coordinator to gather data through the Institutional Research Office and the Financial Aid Office. Data, outcomes, changes in federal requirements and other relevant information will also be represented to the Task Force who will in turn modify the plan and implement and modifications accordingly. This default management plan will be regularly reviewed and adjusted as needed.

  28. Feasibility of Resources at NPCC • Human, financial and physical resources are adequate at this time to adopt additional strategies for Default Prevention/Management. Human Resources • Currently the Financial Aid Staff are viewed as the integral staff for processing of Financial Aid applications including loans. The additional human resources of an extra help person who assists the Default Prevention Coordinator and 4-5 work study students has helped shore up the moving of a loan counselor to the full time position of Default Prevention Coordinator. Also outsourcing of the default prevention Repayment Outreach program to third party in July, 2012, will relieve some of the strain on the staff in this area and the workload associated with these efforts. Physical Resources • The renovation of the Student Center which houses the Financial Aid Department includes a larger area to house extra staff to assist with imaging, calling students and mailing letters and processing in general. The centralization of Financial Aid, Academic Advising and support staff will be beneficial in working as a team for students, improving efficiency and future changes for managing default rate through staff awareness. • Training of the counseling staff has included the area of financial aid processes and access to student information as needed has alleviated some traffic on the financial aid side and makes the counseling more financial aid friendly. Students are able to get information about their FA award at multiple points as they progress through the enrollment/registration process. This has decreased the need to always see a Financial Aid Advisor affording FA staff more time to address loan counseling and intervention. Financial Resources • Financial resources for staffing at the current level remains intact with additional budgeting for outsourcing for repay options.

  29. Current State Current State • NPCC has been engaged in default strategies prior to and during the development of the plan. The current state is reflected below. *Utilizing External Resources • As stated NPCC entered into an agreement with a third party who will start July, 2012 working with delinquent borrowers before they enter default status. The agreement is a late stage default prevention package currently, but in the future NPCC plans to utilize a more extensive option. The college is hopeful that this approach has significant impact on the next default rate for NPCC and is integral in managing the rate. NPCC is committed to funding this external service. In the future when services are expanded to grace period counseling the agency will go through the RFP process and bid the services to determine the awarded agency that will be able to expand these services and assist in the default management of students that have left NPCC.

  30. Action Items

  31. Action Items Page 2

  32. Action Items Page 3

  33. Action Items Page 4

  34. Action Items Page 5

  35. Action Items page 6

  36. Action Items Page 7

  37. The Good News for NPCC • 2010 3 YR CDR down slightly 30.96%- we didn’t save it in the 6 months we had to try but reduced it and have active appeal in place • 2011 3 YR CDR is projected at 28.80%- our third year is going to be saved due to all the efforts we have made according to our projections with our 3rd party we are safe for 2011! • 2012 3 YR CDR is projected at 24.22% currently

  38. Wrap Up • This is a lot more detail than you need now • If you happen to need it or know a school who does you have a copy of a default prevention plan that was approved by the USDE for year 1 • Hints: Tracing students yourself- use Facebook we found tons of students there and contacted them; you can use software like Been Verified to help track them; ask faculty and staff to help you locate students; it takes buy-in from the whole institution to make a change like this work

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