USA Funds Offers Student Loan Counseling – OnlineBusinessDegree.org
With the student loan default rate on the rise for several higher education institutions, USA Funds, a nonprofit organization established to help families finance rising college costs, has developed a tool to promote successful repayment of loans by graduates.
USA Funds Borrower Connect InTouch aims to prevent student loan default through counseling services to schools who lack the resources to reach out to the borrowers themselves.
After receiving authorization from the school, USA Funds will access current borrower and loan status information from federal student loan service systems, and then perform three-way phone calls with borrowers and their loan servers. The process also includes follow-ups to borrowers who have made promises to servicers – this helps ensure borrowers are following through on their commitments.
The program emphasizes that intentions are to counsel borrowers by answering questions, and is not an attempt to collect any payments.
“Ongoing contact with student loan borrowers is a proven best practice for successful student loan repayment,” Denise B. Feser, senior vice president of School and Student Services for USA Funds, said in a press release. “Several colleges and universities have requested this service because they simply lack the staff to conduct the borrower communication campaigns they’ve developed in USA Funds Borrower Connect.”
Harrison College, a school that tested the program, has expressed positive feedback.
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