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Default Prevention Services programs target students who have graduated or left school and have become delinquent on their student loan by at least 30-60 days. They are designed to use state-of-the-art technology combined with a customer-centric approach, to reach delinquent borrowers and provide both early intervention and late-stage counseling. These services help avert default thereby supplementing lenders’ efforts to prevent defaults. This in no way replaces the lender’s responsibility to perform due diligence. If a lender fails to continue required due diligence while the guarantor is providing assistance, interest penalties or loss of a guarantee on the loan may result.

Default Aversion Assistance is collection assistance provided to a lender by a guarantor. It involves the initiation by the guarantor of at least three collection activities. {34 CFR 682.404(a)(2)(ii)}

Lenders should contact lenderservices@isac.org for information on additional default aversion assistance requirements, including time frames for canceling a default aversion assistance request, resubmitting a return default aversion assistance request, receiving skip default aversion assistance, and updating a default aversion assistance delinquency date.

Default Prevention Servicse

Through our toll free number (800-477-4411) or by a friendly courtesy call, ISAC counselors specializing in Default Prevention are helping delinquent borrowers by providing useful information on available repayment options to fit their financial needs, as well as deferment and forbearance eligibility. Answers and advice on loan consolidation can also be obtained.

DAAR (Default Aversion Assistance Request) Report

The twice monthly DAAR report helps schools to work with lenders/servicers and ISAC by identifying delinquent borrowers so that the school may attempt to contact borrowers to encourage repayment, deferment or forbearance in order to avoid default.

ExitExpress

ISAC, through Mapping Your Future/ExitExpress helps schools meet regulatory requirements for entrance/exit counseling and notification. Regulations require that schools forward exit counseling reports to guaranty agencies within 60 days of completion. Through ExitExpress, ISAC can retrieve this data on behalf of the school. Schools derive several additional benefits:

Eliminates the need for the school to forward exit reports;
Saves time and other resources in the financial aid office;
Increases security of exit counseling data;
Enhances the exit data process by efficiencies;
Aids in default prevention efforts due to increased accuracy; and
Establishes a basis for future data transfer.

Skiptracing Services

ISAC provides lenders with non-delinquent Skiptracing assistance through the utilization of its state-of-the-art technology and data interfaces. This helps lenders stay in contact with borrowers in order to effect billing properly.

National Student Clearinghouse

ISAC’s participation with the National Student Clearinghouse provides a conduit for critical student status and enrollment information between schools, lenders/servicers and ISAC.

National Default Prevention Day

ISAC has received national recognition from both the U.S. Department of Education as well as the National Council of Higher Education Loan Programs (NCHELP) on the Default Prevention Materials and Programs and works with other FFELP lender partners to share best practices for default prevention and student debt management.