US Direct Federal LoanDefault management plan

This page contains information undertaken by Strathclyde University to assist students in understanding the responsibilities of borrowing US loans to fund their education and to reduce the number of students who default on their loan repayments.

1. Entrance Counselling

Entrance Counselling is a process that is intended to help borrowers better understand the responsibilities that they will be taking on with Federal Loans. All first time borrowers and new students to the University are required to undertake entrance counselling. During Entrance Counselling, students will learn about:

  • How the MPN works
  • The importance of repaying their loan
  • The consequence of defaulting on the loan
  • Sample monthly repayment amounts

2. Financial Literacy for Borrowers

The University of Strathclyde recommend students only borrow what they need and advise students are not required to take out the maximum amount of loans available to them. University of Strathclyde will provide students with entrance counselling materials at enrolment, following graduation or withdrawal and provide the following information:

  • Estimate of required monthly payment on the borrower’s loan balance
  • Calculators to help estimate and manage debt
  • Loan service contact information
  • Introduction to NSLDS for students
  • Repaying your Student Loans publication

3. Early Identification & Counselling for Students at Risk of Progression/Withdrawal

The University is responsible for monitoring borrowers who are at risk of non-progression or withdrawing and offers different support services that counsel students according to their circumstances with a view to retaining those students. The aim is to ensure every effort is made to resolve any issues to prevent student withdrawal.

4. Communication

All students are directed to Strathclyde University’s Consumer Information and Policies on our website. Borrowers’ academic progress and enrolment status are held on our central student database to be accessible by all relevant offices across the University including the office that disburses funds and authorises US loan payments. Up-to-date contact information for both the student and next of kin is obtained from students at enrolment and stored on our student database. In addition, we request confirmation from the students’ advisers/supervisors of their satisfactory academic progress before disbursement of funds.

The University has effective procedures in place to ensure accurate and timely communications across the relevant departments. Therefore, academic progress and enrolment status is communicated across Campus ensuring the relevant aid is disbursed on time and to the correct students and compliance with Direct Loan regulations.

5. Exit Counselling

Prior to graduating students are reminded of their obligation under Federal Direct Loan regulations to complete Exit Counselling. They are asked to do this and confirm to the Student Finance team that counselling is completed. They are asked to complete it on the Federal Student Aid website. Students who withdraw from their programme or who fall below half time are also asked to complete exit counselling.

6. Timely and Accurate Enrolment Reporting

Strathclyde University will ensure that accurate information on enrolments including any enrolment changes or updates is reported in a timely manner via NSLDS.

7. Analyse Defaulted Loan Data

The University of Strathclyde will run defaulted loan data available from NSLDS and analyse the information to improve default prevention. This analysis and the Loan Record Detail Report will be used to pinpoint common trends amongst defaulters. Any student defaulting on their loans and who contact the Student Finance Team will be directed to their individual Loan Servicer and provided with contact details to discuss repayment options.

Tools & activities for schools

Strathclyde University will also make use of the below recommended tools to ensure data accuracy and employ effective loan counselling and default prevention and management techniques to aid students and the University.

Where do I begin?

Loan counselling

Enrollment Reporting & Data Accuracy

Default prevention

General connections/publications