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What Does Default Prevention Mean for a Counselor?
As a high school counselor you want to be able to provide good, sound advice to your students on planning, applying for, and financing college. With attendance up, tuition, room and board increasing, and the availability of funds becoming more difficult to come by in these tight economic times, there is an increasing reliance upon borrowing. Default occurs when a student is scheduled to make loan payments and repeatedly fails to do so.
The consequences of default have a negative impact on a student’s present and future financial health. For instance, the default will be reported to national credit bureaus which may impact his/her chances of obtaining credit, or financing an automobile or house. It may also mean a person may have to pay higher interest rates, increased insurance premiums, and in some cases may impact an employer’s hiring decision. Fortunately, default can usually be avoided.
Counselors are in a position to discuss with students who intend to borrow the important benefits they’ll earn from debt repayment. To support this effort, ISAC has developed many Default Prevention programs that are free of charge.
For students, our loan repayment information, Default Prevention materials, and Personal Finance Seminars are all designed to educate student loan borrowers on loan repayment, default prevention and good personal financial habits.
Default Prevention Outreach Programs
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