How to help prospective and current students, as well as alumni, to be responsible about taking out student loans and paying them back
One in six American adults has student loan debt, and collectively they owe nearly $1.5 trillion in federal and private loans. While legislators and presidential candidates debate how to address the burgeoning debt load, some colleges are getting personal by offering one-on-one financial aid conversations from the moment a student enrolls—or even earlier.
The goal: Create more responsible borrowers by making more frequent contact with students—rather than just ensuring they go through their federally mandated loan exit counseling prior to graduation.
“Every borrower and financial situation is different. The rules are the same, but having someone sit down and go over your particular situation to help you make borrowing or repayment decisions can be invaluable,” says Betsy Mayotte, president and founder of The Institute of Student Loan Advisors (TISLA), a nonprofit that offers free, neutral student loan advice and dispute resolution assistance.
Megan Coval, vice president of policy and federal relations at the National Association of Student Financial Aid Administrators (NASFAA), says colleges are among the best situated to offer tailored student loan counseling because of the unique relationships they build with students.
Four actions can ensure personalized student loan counseling is most effective.