Resumption of Loan Repayment Report
NASFAA convened the Resumption of Loan Repayment Task Force in September 2022 to develop institutional considerations that schools can follow to communicate with borrowers and assist them as they prepare to resume student loan repayment or begin repayment for the first time. The considerations also aim to address how institutions can better prepare for possible operational or accountability impacts as a result of the resumption of loan repayment. The task force was composed of a geographically diverse group of NASFAA members from all types of postsecondary institutions and sectors.
Download Report (PDF) | Visit Student Loan Repayment Toolkit
In addition to the report, the task force created an easy-to-use toolkit that schools can use to communicate with their borrowers. The customizable toolkit includes a variety of components, such as social media posts and one-page infographics, that outline the following:
- Step-by-Step: How to Prepare for Successful Student Loan Repayment
- Step-by-Step: How to Pick the Right Repayment Plan
- Tips & Tricks for Preparing to Resume Repayment
- Other Programs to Help With Student Loan Debt
- Tips to Avoid Student Loan Scams
The full set of the institutional considerations and rationale, along with the Student Loan Repayment Toolkit, can be viewed in this report. Highlights of those considerations include:
- Understand actions student loan servicers are taking to prepare borrowers for repayment to resume, and ensure institutional efforts to support borrowers are complementary and iterative to servicers’ actions and communications.
- Ensure borrowers are aware of and prepared for the resumption of student loan repayment by distributing the resources included in the Student Loan Repayment Toolkit.
- Use varied channels to communicate with borrowers about the repayment resumption to reach as many borrowers as possible.
- Enhance borrower outreach by partnering with institutional staff and entities outside the financial aid office such as community-based organizations.
- Coordinate institutional efforts with third-party vendors.
- Ensure campus leaders are aware of and prepared for the anticipated changes in cohort default rates (CDR).
- Consider creating and implementing a default management plan to help borrowers remain in good standing and keep CDRs low.
- Closely monitor underlying CDR data and, when necessary, consider appeals to correct inaccuracies.
- Ensure that institutional leaders are aware of the impact and context of the repayment pause on repayment rate calculations.
- Consider implementing a comprehensive set of efforts to help ensure successful repayment as well as default prevention.
Download Report (PDF) | Visit Student Loan Repayment Toolkit
Publication Date: 5/8/2023