Default Prevention Initiatives

Debt Management Team
The team assists schools by providing training, workshops, and on-site entrance and exit counseling sessions.

Default Prevention Department 
The department counselors actively pursue delinquent borrowers by utilizing the Borrower Pursuit System, averting numerous defaults and thereby assisting schools in lowering their default rates. A flyer has been designed to enhance borrower contact. It explains deferments and forbearances and encourages borrowers to call the SLGFA Default Prevention Hotline.

Mapping Your Future®
SLGFA is a sponsor of Mapping Your Future®, which provides schools and students with career exploration, college preparation, financial aid, and financial literacy information and services. They provide free Online Student Loan Counseling and a variety of money management tools, including a budget calculator, as well as information on finding scholarships. SLGFA has Mapping Your Future's entrance and exit loan counseling leaflets available for schools to distribute to borrowers.

Early and Late Stage Delinquency
SLGFA offers schools Early Stage Delinquency (ESD) and Late Stage Delinquency (LSD) Reports and Early and Late Stage Delinquency Borrower Letters, which schools can receive via secure e-mail.

The ESD and LSD reports make schools aware of the possibility of default and provide the school with contact information for the borrower. These reports can be used by the school to make phone contact with the borrower and to encourage the borrower to make payment arrangements to avoid default. In an effort to increase calling success, here are some helpful tips and a sample phone script that can be used by those schools choosing to take that extra step toward default prevention.

The ESD and LSD borrower letters allow schools to notify borrowers about the possibility of default, providing borrowers with the contact information of SLGFA's Default Prevention Department or their loan holder. Mail that is sent from the borrower's school is typically opened before mail sent from the loan holder. Therefore, schools that mail out the ESD and LSD letters can be quite successful in making contact with their delinquent borrowers.

ESD flags the borrower when he or she is 150 days delinquent while the LSD picks up the borrower when he or she is 211 days delinquent or about to default on his or her student loan.
If you would like more information, please contact SLGFA College Access & Debt Management Advisor Bonnie Hartz, 800-622-3446, ext. 634.

Enhanced website
Our website features a number of default prevention tools and tips to aid borrowers in understanding and managing their student loans.

U.S. Department of Education
The U.S. Department of Education published a sample default prevention and management plan that provides guidance for developing and implementing a comprehensive program for your institution.