Process
SLA works with its institutional partners to encourage timely and frequent submissions so that SLA's counseling can begin within the first sixty days after the student has left the institution, and is customized by status upon separation.
Borrowers who make their initial payment on-time rarely default. Our statistics indicate that 75 to 80 percent of student borrowers who ultimately default failed to make their first payment or process something in lieu of that payment. Accordingly, it is SLA's policy to contact servicers to verify the receipt of first payments before the end of the month in which the payment is due. This procedure enables SLA to begin working with a school's "most likely to default" borrowers 60 to 90 days prior to their appearance on a preclaims or delinquency list.
Pro-active Outreach and Early Counseling
- Perform Exit Interviews and Introduce SLA services
- Update/Maintain borrower contact information
- Update/Maintain reference contact information
- Submit borrower and references to SLA
Separation/ Graduation Activities
- Send written correspondence (email or postal service)
- Conduct telephone counseling
- Verify first payment due date
- Perform skip tracing, as necessary
Grace Period Activities
- Verify first payment received by servicer
- Begin aversion strategy with borrower if first payment not made
- Send deferment or forbearance forms, as necessary
- Perform 3-way calls with servicer for alternate payment plans
Early Repayment Activities
s- Begin telephone, written and email counseling efforts
- Check accuracy of contact information & skip trace, if necessary
- Contact references, if necessary
- Perform verifications with servicer every 45 days