Inceptia, a division of NSLP, announced an enhancement to its default prevention solutions with the addition of its new Default Prevention and Management Plan offering. The Default Prevention and Management Plan is an evolution of the more than 25-years of sound, proven default reduction and repayment outreach solutions developed by NSLP.
“We continue our non-profit commitment to deliver leading repayment solutions to students and schools,” said Randy Heesacker, president and CEO, NSLP. He went onto say that, “With increasing school default rates, Inceptia’s Default Prevention and Management Plan, supported by our repayment outreach and default prevention solutions, equips schools with the expert guidance they need to reduce default rates.”
U.S. Department of Education Focus on Defaults and Sanctions The U.S. Department of Education has stated the Cohort Default Rate is a measure of a school’s administrative capabilities. A high cohort default rate can negatively reflect on a school’s perceived quality, result in provisional certification, loss of Title IV eligibility and loss of private loan funds.
When students don’t receive the debt and repayment support they need, it can cause them a lifetime of pain. “All student borrowers should have access to debt management and repayment assistance,” Heesacker said.
Mandatory, Preventive and Proactive Plans Beginning in 2012, the U.S. Department of Education required all schools with a single-year, 3-year cohort default rate of 30 percent or greater establish a default prevention taskforce and develop a default reduction plan with measurable objectives for lowering the school’s default rate. The mandatory plan must be approved by the U.S. Department of Education and needs to contain a preventive, multi-faceted, student-focused approach to significant default reduction.
Inceptia’s Default Prevention and Management Plan program is a six-step process that guides schools as they develop their customized plan designed to lower default rates, improve student success and protect the school’s reputation.
The process begins with a deep analytic dive into the institution’s past and current student data to analyze borrower characteristics – identifying the most at-risk and the most successful student traits and trends. From there, Inceptia helps schools formulate plans and prioritize financial literacy programs, default aversion initiatives, financial aid offerings and retention strategies.
For schools not required to prepare a mandatory plan, Inceptia can help prepare proactive and effective default reduction plans.
“For schools experiencing an upward trend in default rates, Inceptia can help prepare proactive and effective default reduction plans before they may be mandated to do so,” Heesacker said
Former ED Debt Management Expert Partners With Inceptia
Inceptia has partnered with John Pierson, former U.S. Department of Education default aversion expert, to develop and deliver its Default Prevention and Management Plan.
Pierson is the author of several default aversion articles and has spoken on the topic nationally. His background complements Inceptia’s already established repayment outreach solution and financial literacy experts. Default Prevention Webinar With John Pierson Join Inceptia and John Pierson on May 22 for a webinar, “Curb Your Default Rate - Build a Default Prevention Plan” Register at: http://tinyurl.com/boyqfku.
Inceptia, a division of National Student Loan Program (NSLP), is a non-profit organization providing much-needed support to help schools effectively fulfill their roles and responsibilities. Our mission is to provide guidance to schools, along with the means to help their undergraduate, graduate and professional students succeed. Through comprehensive analytics, student success tools, financial education, default prevention and financial aid management, we are confident we can help all students, not just borrowers, become financially responsible adults. We are here to make it possible for more schools to launch brilliant futures. More information at Inceptia.org.