The DACC FAO works closely with the DACC records office to monitor Graduates. The Intent to Graduate form is used to identify those who will be graduating by next term. These graduates, who were Stafford loan borrowers, are notified and provided with Loan Exit Counseling materials and invitation to meet with FA staff to review.
DACC has enrolled in default management services offered by Great Lakes Higher Education (GLHE) Corporation which provides monthly reports regarding estimated Cohort Default Rate based on current data as well as borrowers tracking of loan status and repayment activities. These reports provide DACC with a means to contact student borrowers to offer loan counseling to avoid a default situation.
Another source used is the Illinois Student Assistance Commission (ISAC) Default Aversion Assistance Roster (DAAR) notices. These notices are used to send a letter to the student indicating contact information, consequences of default and how to avoid it. Included with the notice is an Update form for address, phone, name change if we are aware of any changes we will send this information to ISAC as well as asking the student to do so.
DACC uses the National Clearing House (NCH) and reports all attendance in a preset cycle throughout the year and as needed “real time” via the Internet. In addition, individual lenders/servicers are notified via hardcopy notices as attendance changes, a copy of this notice is sent to the guarantor as well.
The campus as a whole must commit to Default Management. It is not just a financial aid office “issue”. The integrity and availability of financial aid programs are at risk for all future students. The role of the financial aid office is to keep the campus current on issues and monitor the application and success of the plan.
The faculty at DACC designed a New Student Orientation class for all first time attendees at DACC. A session of this class is dedicated to consumer education including student loans. The FAO staff present this session and invite speakers such as staff from Consumer Credit Counseling Services, preferred lenders and local credit unions to offer their expertise on the subject.
The Director and/or Assistant Director prepare an annual statement for the DACC President (that is presented to the DACC Board) that provides updates in all matters concerning student financial aid. A part of this report is dedicated to the Default Management Plan and the current Cohort Default Rate.
This material is presented at the annual Faculty/Staff In-service at the beginning of each fall term. During the In-service the FA staff emphasizes to faculty the importance of reporting students as withdraws who are not meeting their attendance requirements and to do so in a timely manner so that DACC is in compliance with the Return of Title IV regulations as well as the FFEL program concerning minimum enrollment requirements.
The reality is that DACC does not have the power to eliminate all defaults. However, every effort possible is made and DACC staff remains diligent in process and procedures that help improve the situation.