Support Student Borrowers’ Rights

Federal Student Loan Consumers Are Entitled to Comprehensive Debt Management

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For Legislators

• Education Debt Management Works
• Legislation to Evolve the Guarantor
• Financial Counseling and Degree Attainment
• Negotiated Rulemaking

Education Debt Management Works

Assisting students and families in managing their education debt involves more than leaving a phone message once a borrower’s loan is past due. True education debt management requires targeted communication that educates and engages borrowers in their financial futures.

The National Association of Student Loan Administrators believes that federal student loan reform must focus on borrower success and the right to education debt management services—and these can be achieved by evolving the role of the guarantor and letting them make education debt management services universally available.

For years, the NASLA guarantors have made delinquency and default prevention the cornerstone of our mission—and our results speak for themselves.

ASA’s Cohort Default Rate

Cohort default rates (CDRs) monitor effectiveness in default prevention. They track the borrowers within a Federal Family Education Loan Program (FFELP) participant’s portfolio who default within 2 years of entering repayment. The most current CDR tracks borrowers whose first loan repayments came due between October 1, 2006 and September 30, 2007, and who defaulted before October 2008.*

American Student Assistance^® (ASA) is consistently among the lowest in the nation in CDR. At just 3.7%, ASA’s current CDR is the second lowest among all national guarantors, and well below the national average rate of 6.7%.

ASA remains committed to borrowers’ rights and debt management services, especially during these tough economic times. Now more than ever, borrowers need help successfully repaying their student loans.

* The 2008 Reauthorization of the Higher Education and Opportunity Act changed the CDR definition. Beginning in 2011, CDR will measure the percentage of borrowers who default within the first 3 years of entering repayment.

More Loans in Good Standing

95% of all loans in the ASA portfolio are currently not delinquent, or “in good standing.”

Loans Get Students Through College. Support Reform that Gets Them Through Their Loans.