Default Management Plan

All new borrowers under the Direct Loan program, including new students or students changing their degree programme, are required to complete entrance counselling.

The StudentAid Entrance Counselling covers:

• How the Master Promissory Note (MPN) works
• The importance of loan repayment
• Consequences of loan default
• Sample monthly repayment amounts

A record of the completed counselling is downloaded from the Common Origination & Disbursement (COD) website by the Financial Aid Office and kept in the student’s file, as per the Data Protection information advised within the Consumer Disclosure Information.

The University of Aberdeen encourages students to only borrow what they need, rather than automatically accepting the full loan amount offered. Before confirming any loans for the academic year, students should make themselves aware of the repayment obligations of the loans they intend to borrow.

Returning students are strongly advised to review their current loan balance through their StudentAid login.

These recommendations are included in the financial aid package sent by the US Financial Aid Office. Students must respond in writing to confirm both the loan amount they wish to borrow and their understanding of the associated repayment obligations. Please note that US Federal Loan applications will not be processed without this written confirmation.

We monitor students who may be at risk of non-progression or withdrawing. If concerns are identified, students are counselled according to their circumstances and provided with support in an effort to retain their enrolment and help them stay on track.

Information on responsibilities placed on the students to maintain satisfactory academic progress, and the University’s responsibilities to report this, can be found within our Satisfactory Academic Progress (SAP) Policy.

The University of Aberdeen has a responsibility to identify and report students who have withdrawn from their studies, including those taking a temporary leave of absence, within 45 days of the date the student is determined to have withdrawn.  Further information on how a withdrawal can affect Federal Direct Loan eligibility can be found within our Return to Title IV (R2T4) Policy.

Students considering withdrawing or taking a break from their studies are recommended to consult with members of university staff before making the decision to withdraw. Students can discuss their personal circumstances with their personal tutor, Student Support (student.support@abdn.ac.uk) or the US Financial Aid Team (usaloans@abdn.ac.uk). Any change may affect a student’s Student Visa status, if applicable, and therefore, it is also strongly recommended that students seek advice from the Immigration team (student.international@abdn.ac.uk) before making their final decision.

Once a withdrawal or suspension has been processed, the US Financial Aid team will provide the student with information on the Federal loans, including any refunds, if applicable, as per the Return to Title IV Policy. The student will also be requested to complete their Exit Counselling (opens in new tab).

The University of Aberdeen’s Consumer Disclosure Information is available for all students & prospective students to access prior to apply for US Federal Direct Loans. All students in receipt of Title IV Direct loans are reminded of this information after their loans have been confirmed.

Academic progress and enrolment status are held on the central student record system (SRS), which is accessible by all relevant offices across campus, including the offices that disburse funds and authorise payments. This information is available to the student via their StudentHub.  The US Financial Aid Team works with the Registry Officers to confirm satisfactory academic progress before each disbursement.

Up-to-date contact details for students and next of kin are collected from students during their enrolment each year.

The university has regulations and procedures in place to ensure accurate and timely communications across the relevant departments. Departments are reminded of their responsibility for timely and accurate notification of changes to the student’s enrolment, such as an unapproved withdrawal, and/or satisfactory academic progress each academic year. This ensures the relevant loans are disbursed on time and to the correct students in compliance with Direct Loan regulations.

Students are advised via email of their right to cancel or amend their loan values before each disbursement is made. The right to cancel email also provides students with Satisfactory Academic Progress (SAP) information, details on how their loan disbursement is allocated for institutional charges and living expenses, and a breakdown of their loans by type, including the gross values, origination fees and net award values.

Students who graduate or withdraw must complete Exit Counselling as a requirement of the Federal Direct Loan Program. Students who fall below half-time enrolment are also required to complete Exit Counselling.

All students are directed to: https://studentaid.gov/exit-counseling/

Students must confirm completion of the Exit Counselling with the US Loan Administrator.  A copy of the Exit Counselling confirmation is kept on file, as per the Data Protection information advised within the Consumer Disclosure Information.

As a condition of our eligibility to certify Direct Loans, the University is required to submit regular and accurate enrolment updates to the National Student Loan Data System (NSLDS) throughout the year.

Defaulted loan data is monitored to identify defaulting borrowers and to analyse reasons for defaulting. We use this information to improve default prevention and enhance best management practices and initiatives. Internal data includes key information such as school attended, program of study, demographics, grades, etc. The Loan Record Detail Report (LRDR) is reviewed to determine if there are common characteristics among defaulters.

We make use of the recommended tools listed below to ensure data accuracy and use effective loan counselling and default prevention management techniques to aid students and the University.

Any students identified to be defaulting on their loans will be directed to their individual loan service provider in the first instance to discuss repayment options.

The University of Aberdeen will make use of the recommended tools (listed below) to ensure data accuracy and employ effective loan counselling and default prevention and management techniques to aid students in receipt of Federal Aid and the University itself.

FSA Assessments for Default Prevention and Management

https://fsapartners.ed.gov/financial-aid-delivery/default-prevention-and-management

• Students and Counsellors http://www.studentaid.gov/
• The Student Guide and NSLDS for Students http://www.studentaid.gov/
• How much will it cost?
  • National Centre for Education Statistics https://nces.ed.gov/collegenavigator/ 
  • Student Aid Entrance Counselling https://studentaid.gov/entrance-counseling/
  • Student Aid Loan Simulator https://studentaid.gov/loan-simulator/
• How will I pay for it? https://studentaid.gov/h/manage-loans
• Will I make enough money in my chosen occupation to repay the student loans I receive?
  • US Bureau of Labor Statistics: Earnings https://www.bls.gov/cps/earnings.htm#earn
  • US Bureau of Labor Statistics: National Compensation Survey (SIC) https://www.bls.gov/eci/home.htm
• Repaying Your Student Loans https://studentaid.gov/manage-loans/repayment
• Ombudsman Office https://studentaid.gov/feedback-ombudsman/disputes/prepare
• Ensuring Student Loan Repayment Best Practices for Schools https://fsapartners.ed.gov/sites/default/files/attachments/eannouncements/0118nhbook1web.pdf
• SFA Assessments for Schools https://fsapartners.ed.gov/sites/default/files/2021-03/iep.pdf
• FSA Assessments for Schools https://fsapartners.ed.gov/sites/default/files/2021-03/1718FSAHbkAppendixD.pdf
• JumpStart Personal Financial Literacy http://www.jumpstart.org/

• NSLDS Enrolment Reporting Guide, formerly SSCR User’s Guide https://fsapartners.ed.gov/sites/default/files/2022-11/NSLDSEnrollmentReportingGuideNovember2022.pdf
• NSLDS Date Entered Repayment Report, School Repayment Information Loan Detail Report, and Enrolment Reporting Summary Report https://nsldsfap.ed.gov/
• NSLDS Reports, requesting and formatting questions - Reports Tab https://nsldsfap.ed.gov/
• NSLDS User ID:
• CPS/WAN Technical Support 1-800-330-5947   
• NSLDS Customer Support 1-800-999-8219
• Cohort Default Rate Guide for challenges, adjustments, and appeals information https://fsapartners.ed.gov/knowledge-center/topics/default-management/cohort-default-rate-guide 

• FSA Assessments https://fsapartners.ed.gov/knowledge-center/topics/default-management
• Ensuring Student Loan Repayment Best Practices
  • https://fsapartners.ed.gov/sites/default/files/attachments/eannouncements/0118nhbook1web.pdf 
• NSLDS Reports and Exit Counselling Loan Exit Counselling Completion Report – EXTC01  https://nsldsfap.ed.gov/
• NSLDS Reports, requesting, and formatting questions Reports Tab
  •  https://nsldsfap.ed.gov/
• NSLDS User ID:
  • CPS/WAN Technical Support 1-800-330-5947   
  • NSLDS Customer Support 1-800-999-8219
• Late Stage Delinquency Assistance (LSDA) Guide
  
  • https://fsapartners.ed.gov/sites/default/files/attachments/presentations/04SpringDLWkshopReducingDLDefaultsLSDA.pdf 
  • Direct Loan Schools can access via COD website https://fsapartners.ed.gov/home/
  • For FFEL Schools,  Default Prevention Strategies (or contact your guaranty agency)  https://fsapartners.ed.gov/financial-aid-delivery/default-prevention-and-management

• Information for Financial aid Professionals (IFAP) Knowledge Library with publications, training, tools, references, laws, etc. https://fsapartners.ed.gov/home/
• The Office of Federal Student Aid https://www.ed.gov/about/ed-offices/fsa/federal-student-aid 
• The Student Guide http://www.studentaid.gov/
• National Student Loan Data System https://nsldsfap.ed.gov/
• The office of Federal Student Aid provides publications, fact sheets, online tools, and other resources to help you prepare and pay for college or career school. https://studentaid.gov/resources