SASFAA Nine News

Use Grace Period Counseling to Reinforce Education Value
By Pam Beckmann, Inceptia Director of Customer Service

“Is college worth all that debt when I probably won’t find a job anyway?”

These words could be echoing the halls of high schools across the country. Student loan debt. Graduate unemployment. The media hasn’t been kind to higher education lately.

Despite the statistics quoted in news stories, a college education is still a sound investment. Unfortunately the economic downturn has impacted recent college graduates who are experiencing 8.9 percent unemployment. But according to a 2013 study by the Center for Education and the Workforce, unemployment rates are even higher for job seekers with a recent high school diploma at 22.9 percent, and devastating for high school dropouts at 31.5 percent. Plus, the potential for earnings are far greater for college graduates as detailed in Education Pays by the CollegeBoard.

When a family considers investing in a college education, often their decision hinges on who will provide the best value for their future college student. In addition to quality of academics, living arrangements, payment options and placement opportunities, a family wants to know how an institution will nurture their student throughout his or her tenure.

Grace period counseling is one way to demonstrate you care about the success of your students. This low cost program has a high rate of return for students’ peace of mind. Even if you have a low cohort default rate, prospective students and families will be impressed with your level of commitment to student success.
Often overlooked, grace period counseling fills the gap between exit counseling and the borrower’s first student loan payment. Although graduates and withdrawn students learn about repayment options during exit counseling, grace period counseling reinforces accurate communication during a time of uncertainty.

By having highly trained counselors reach out to the students who graduate or are no longer
enrolled at least half time, you can prevent potential issues that may come up during this crucial
period. Their grace period is the perfect opportunity to help them understand their:

• student loan status

• repayment start date

• repayment options

• rights and responsibilities

Plus, grace period counselors can answer repayment questions and direct them to resources like
NSLDS. When considering a grace counseling outreach service, be sure they are up to date on
regulations and abide by the Fair Debt Collection Practices Act (FDCPA) for your own protection.

No matter what the media says, a college degree still delivers a lifetime of value. By offering
grace period counseling, you’re adding one more benefit that you can promote to future students
and families. Grace period counseling can be that final, caring touch point that reassures students
on how to navigate the repayment process as they transition from your institution to their future
careers.

For more information about grace counseling outreach, visit Inceptia.org.