"This record-low rate reflects the industry's commitment to helping borrowers better manage their student loan debt," said Karen Delozier, director at Sallie Mae's Kansas Loan Servicing Center.
"While several flexible loan repayment plans are available to borrowers, Sallie Mae
understands that they sometimes experience financial difficulty.That's why our representatives are trained to assist borrowers with delinquent accounts and prevent them from defaulting on their loans."
In fact, Sallie Mae
designated the Kansas location as its Default Management Center, where it focuses on reducing delinquencies, improving skip-tracing and ultimately preventing defaults.The company has made notable progress.In 1998, Sallie Mae's cohort default rate fell to 6.6 percent-25 percent lower than the 1997 national rate (latest available figure).
"We have proven default management strategies and will continue to work with our borrowers and school partners to further reduce defaults," Delozier
Efforts to resolve delinquent accounts include calling or writing borrowers to notify them of their account status, offering alternative payment plans that accommodate their financial situation, recommending deferment or forbearance of loan payments, or offering immediate payment options such as Western Union® wire transfer or Speed Pay. Sallie Mae
also developed A Guide to Default Prevention to help schools improve their financial aid counseling and default prevention services.This campus-based guide recommends strategies schools can implement to help student loan borrowers stay up-to-date with loan repayment, and includes options institutions can offer borrowers who encounter difficulties.The Guide also contains several default aversion services Sallie Mae
and its lending partners can provide institutions with high default rates.
"Our successful default prevention efforts have helped put borrowers on track to healthy financial futures," Delozier
continued."As the nation's leading provider of education funding, we realize the importance of working with students to first help them realize their higher education dreams, then make sound debt management decisions."
Please contact your HigherEd account executive, or Karen Delozier
at 785/865-7162 for additional information about Sallie Mae default management initiatives or to request A Guide to Default Prevention.
Online bidding lets students decide the price of college tuition
A new trend in higher education may have some college applicants playing "Let's Make a Deal" when it comes to the price of tuition.By visiting eCollegebid.org
, students can bid for college tuition, based on the amount they want to spend rather than the school's sticker price.While some say that the merging of e-commerce and higher education will create greater opportunities for students, others fear that it puts too much emphasis on the college's cost, rather than the quality of education.