Creating Consistency in Educational Finance: A Training Curriculum

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Module 1  

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Module 1: Customer Service Representatives

Exercising good customer service and communication skills

Many customer service representatives know firsthand that a conversation over the telephone is difficult and that no other form of communication can replace the effectiveness of an in-person conversation. Furthermore, the way information is communicated to the student is just as important as the information being communicated. Therefore, in order to successfully reach out to borrowers and help them understand the importance of paying back their student loans, it is critical for customer service representatives to practice good customer service skills.

Following are some key principles that customer service representatives can employ when communicating with borrowers. Applying these techniques in all communications with the student can facilitate meaningful telephone conversations regarding the student's educational debts.

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Keys to customer service

  • Listen actively and empathize with genuine concern. Discussing financial matters can be difficult for many borrowers; therefore, avoid embarrassing or scolding borrowers.
  • Deliver accurate and complete information. Keep yourself up to date on regulations affecting student loan repayment.
  • Serve with a unified voice. Refrain from blaming others (lenders, servicers, schools, or guarantors) for misinformation. Instead concentrate on clarifying information for the student.
  • Maintain a positive, service-oriented attitude. The borrower should never be an inconvenience. Borrowers should be treated with respect and taken seriously.
  • Go above and beyond as an advocate for each borrower. If you do not know the answer to a question, refer the borrower to the appropriate person or place.

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Practicing proper telephone etiquette

In order to maximize the exchange of information with borrowers over the telephone, consider following the techniques described below.

  • Avoid background noise, including radios, newspapers, and other distractions.
  • Speak warmly and with a pleasant tone.
  • Be sure not to use jargon, interoffice codes, and abbreviations when speaking with a borrower. A good rule to follow is that if someone you know outside the office wouldn't understand the term you're using, don't use it with a borrower.
  • Always be sure to ask the borrower if it's alright to place him or her on hold, and don't leave the telephone on hold for an extended period of time. Be sure to check back with the borrower and give them a progress report every 30-40 seconds.
  • When transferring borrowers, explain the reason for the transfer and let them know who you will be transferring them to. Be sure you know the transfer instructions for the telephone system you are using so you don't disconnect the borrower
  • Keep your voicemail message professional and up to date. A borrower may call during hours you are not in the office. Your outgoing message should provide the borrower with pertinent information before he or she is prompted to leave a message.
  • Be patient, stay cool and collected under pressure or when facing an irate borrower. Your ability to stay patient reflects positively on the institution.
  • When receiving calls for someone else and that person isn't available, be sure to offer assistance. Do not make commitments for others. Say, "I'll give him your message when he returns," rather than, "He will call you as soon as he returns."
  • Take accurate and detailed messages. Be sure they are legible and include the date and time of the call and the best time to reach the borrower.
  • When documenting information, be sure to obtain the correct information from the borrower. This includes the caller's name and spelling. Also be sure to repeat the information you are receiving back to the borrower to assure accuracy.

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Exercising effective listening skills

Developing effective listening skills can result in greater productivity and efficiency. Also, it shows the borrowers that you are serious about helping them and it fulfills their need to be heard.

  • Try not to formulate questions or remarks while listening to a borrower as this will distract you.
  • Be sure not to listen for what you want to hear, but rather listen to what they are saying.
  • Try to think like the borrower. His/her needs are important. Limit your own talking and concentrate on what the caller is saying.
  • Don't interrupt callers and do take notes while they are talking. This will help you remember important points.
  • Ask the borrower questions if you feel you have missed important information, and be sure to react to ideas, rather than to the person you are speaking with. Ask focusing questions.
  • When you are not using effective listening skills, you may find yourself doing unrelated projects while talking to a borrower, assuming what the problem is and tuning the borrower out or daydreaming.

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Learning how to properly ask questions

In some cases, borrowers may not know exactly how to ask a question. Always keep this in mind and help borrowers ask what they really want to know by using the following probing techniques.

  • Use both open- and closed-ended questions. Open-ended questions usually start with words like how or what. They are used to get a person to give more information.
  • Don't use questions that start with why because it may put the borrower on the defensive.
  • Closed-ended questions can be answered with yes or no, or a short answer. They are used to get specific information.

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Closing the call with the borrower

Following the above techniques can result in productive conversations with the borrower. However, exercising proper telephone etiquette without creating a sense of urgency in the borrower's mind may not lead the borrower to take action. Therefore, it is imperative that customer service representatives be courteous to borrowers but at the same time remember to be firm and urge borrowers to take action.

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Urging the borrower to take action

  • Keep the objectives in mind. It is important that every conversation center on bringing the account current and in some instances having a final resolution to the delinquency made with each call. Phrases to keep in mind are "once" and "done" or "only handle it once (OHIO)." Strive for this conversation to be the only conversation necessary.
  • Treat every case with the same level of importance and sense of urgency. Whether the borrower is 60 days past due or 290 days past due and/or in a claim-pending status, convey the significance of the delinquency to the borrower. This should not, in any way, decrease the level of customer service that is provided to the borrower. Continue to provide the best customer service possible.
  • Be more assertive and less tentative when counseling borrowers. Advise borrowers what actions must be taken rather than asking them to take the action or asking if they are interested in taking the action. Once the action is decided upon, have the borrower restate it.
  • Assess the borrower's situation correctly. Stress that making a payment is the best option available. Remember, just because a borrower is unemployed does not mean that he or she cannot make a payment. If the borrower agrees to make a payment or bring the account current with payment, get a commitment for a specific amount and date as to when the payment(s) will be sent.
  • If the borrower cannot bring the account current with a payment, discuss possible deferment options.
  • If eligible for a deferment, explain the deferment requirements and send the deferment form to the borrower. Suggest downloading the form or sending the form via fax if the borrower has access and capability. If not, mail the form. Advise the borrower of the importance of accurate completion of the form and timely return. Strongly encourage the borrower to follow-up to ensure the deferment was received and processed. Advise the borrower to continue follow-up efforts until confirmation is received that the deferment is in place.
  • If the borrower is ineligible or does not qualify for any deferments, explain the forbearance option. Explain that a forbearance will temporarily postpone payments or can be used to bring the account current. Ensure that the borrower understands the impact forbearance may have on his or her loan and future payments.
  • Provide the borrower with a phone number for contacting you if additional questions arise. Provide the borrower with the company Web address so he or she may download applicable forms, research the situation on their own, and keep track of loan repayment.
  • In instances of delinquency, inform the borrower that the delinquent account will default at 270 days unless satisfactory repayment arrangements are made. Stress the importance of keeping the delinquency below this point until approval of the deferment or forbearance.
  • If the borrower is going to send a payment, stress the need to stay in contact to confirm the exact number of days the loan(s) is delinquent and the amount. This will help ensure an adequate payment is received before the borrower reaches the 270th day of delinquency (default). Discuss the consequences of defaulting on a student loan. Ensure that the borrower knows what can and will happen.
  • At the conclusion of the call, summarize the conversation and restate the actions the borrower must take to resolve the delinquency. Get a commitment from the borrower to take the necessary actions.
  • It is important that all borrower contact be documented. This documentation needs to be thorough, concise, and discreet. Always document information received.
  • In some cases, it will be necessary to follow-up on an account after a borrower contact has been made. Although not common, follow-up may be necessary in certain circumstances. If a borrower has questions/problems that you cannot resolve without research, set a time to call the borrower back. Ensure you do, even if only to tell the borrower that you will need more time to research his/her question/problem.

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