Transitioning into repayment can be a challenging task for many students. Although graduates have a variety of repayment options available, we often hear that students don’t take advantage of options other than the standard repayment plan. Usually, it’s because they’re overwhelmed with the choices or simply don’t know their options.
“From what we’ve seen in industry studies, students who don’t make plans for repayment many times struggle with meeting their student loan payment obligation,” says Bob Forbrook, vice president of debt management and default aversion. If a delinquency does occur, financially stressed borrowers are often either too embarrassed or scared to call their lender for a solution. As a preventive measure, T.H.E. started a calling campaign to reach borrowers before mistakes happen. “Our debt management department runs multiple calling campaigns throughout the year to help our students set up a repayment strategy that fits their situation,” Forbrook says.
Spring brings about the biggest effort – March through July, our debt management counselors are slated to contact almost 14,000 spring graduates. Counselors work with specific graduating classes. The goal is to let students know about the Electronic Loan Counselor (ELC), an electronic repayment planning tool, and help them file forms for repayment postponement and repayment plan options. Debt management counselors also answer any repayment questions borrowers may have.
Spring graduates have enough to think about besides worrying about repayment. T.H.E. brings personal service to these borrowers so they can get peace of mind during a complex transition.