Five Ways Colleges and the Federal Government Can Reduce Student Loan Default (Part 2)

By Bryce McKibben - EvoLLLution. Although at-risk borrowers default for a variety of reasons, even seasoned students need information and advice in order to make informed borrowing decisions and stay on track in repayment. Loan counseling is intended to serve this need for information, but many students only breeze through the required online counseling when they first enroll — and sometimes before really knowing whether they need, or how much, to borrow. Others skip their “exit” counseling altogether, even though these sessions contain valuable information on the repayment plans and deferment or forbearance options available to them. In essence, they’re missing critical advice on how to avoid default. More...