Many discount programs reward borrowers who select automatic payment options. These automatic payment plans promote timely loan payment. Borrowers who have a consistent record of on-time payment, usually over 48 months, are rewarded with additional discounts. Working together, schools and student loan administrators help prevent defaults by sharing information about delinquent student borrowers. For example, USA Group offers schools the option of receiving a list of borrowers who are delinquent in their loan payments.
Schools can also receive a list of borrowers in default.
Since failure to graduate is a key factor associated with student loan defaults, student retention efforts are another key to successful default prevention. Please do not send financial aid questions to this address. All rights reserved.