TG Updates

New Council initiatives help reduce student loan default

Traditionally, schools compete with each other for students, for athletics, and for research dollars. Student loan lenders compete for borrowers and market share. But in the case of the Council for the Management of Educational Finance, school and lender representatives come together to focus on preventing default. This collaboration has served the financial aid community well, and several new initiatives are making this a banner year for the Council.

"This year has been an extraordinarily productive year for the Council," said Vickie Reyes, TG's director of community and public affairs and liaison to the Council. "We have accomplished several major objectives."

Industry dialogue focuses on consolidation and alternative loans
Following up on the success of a productive industry dialogue last year, TG and the Council are hosting a second industry dialogue this week: "Education Loan Servicing in the New Economy: An Industry Dialogue with Loan Servicers." The event, being held on June 5 in Dallas, will bring together members of the servicing, school, and lending communities to discuss consolidation and alternative loans and associated default aversion issues.

New publications reach middle and high school students
Working with TG, the Council introduced two colorful and informative publications: The Great College Mystery for middle school students and Facing Your Future for high school students. The new publications provide early education on debt management and college financing. The publications were distributed across the state in support of the College for Texans Campaign, and have received considerable acclaim. This summer, the Council and TG will unveil the Spanish-language editions of these publications.

Poster gives new meaning to the idea of a paper trail
Over the past few years, TG and the Council have produced a series of award-winning posters that use humor to encourage student loan repayment. New to the series this year is the "Paper Trail" default prevention poster.

Servicer guide updated
TG and the Council recently unveiled a new version of Servicers: Your Partners in Default Aversion - A Guide for Institutions of Higher Learning. The guide describes the techniques and tools that servicers use for delinquency resolution. The new guide also includes highlights of innovative practices that go beyond the due diligence required by law, and several strategies schools can incorporate into their default aversion efforts. For more on the new servicer guide, see Shoptalk Online 204.

New training model coming soon
TG and the Council are putting the finishing touches on a new edition of the popular default prevention training model for schools. The updated model, called A Clear and Present Danger to Institutional and Student Success, integrates best practices in default aversion and strategic enrollment management. Copies of the new model will be available from TG soon—watch Shoptalk Online for details.

Council continues to evolve
Some of the new initiatives represent an evolution in the type of work the Council produces. The Council has adopted a much broader and comprehensive approach to default prevention, according to Vickie Reyes, TG's liaison to the Council. "The production of The Great College Mystery and Facing Your Future provide early education on debt management and college financing," said Reyes. "The revision of the servicer guide and the new edition of the Default Prevention Model provide a more holistic approach to default prevention."

The membership of the Council has also changed since it was created in 1997, reflecting a broad perspective in higher education. New representatives from the enrollment management community and the operations arm of student lending are bringing new ideas and perspective to the group.

The future
"The student loan industry landscape is highly fluid. It is partly influenced by its market-driven nature, by the advent of new technologies, by ever-changing and rapidly growing student demographics, and by state budget deficits and the upcoming reauthorization," said Reyes. "All of these factors may significantly influence student loan default aversion measures. The future of the Council will involve a continued focus on strategic enrollment management and take a proactive approach in dealing with the challenges to come."

More information
Want to know more about the Council? Contact Vickie Reyes at (800) 252-9743, ext. 4632, or send an e-mail message to vickie.reyes@tgslc.org. Information on the Council is also available on TG Online at www.tgslc.org/council/index.cfm.

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