Default Prevention Grant Produces Innovative Proposals

Ed Gilbert

As the lead guaranty agency for New York State students, the Higher Education Services Corporation (HESC) has been at the forefront of default reduction strategies for over ten years. The most recent example of HESC’s commitment to reducing defaults is the implementation earlier this year of a Default Prevention Grant. Through an application process, schools could quality for money to implement programs intended to cut student loan defaults.

In response to the announcement of this program HESC received fifty-four grant proposals, containing some very innovative approaches to helping students avoid default. Among the ideas were:

A proposal calling for hiring a retention coordinator who will conduct financial literacy workshops that address understanding credit, budgeting and the basics of credit management
A proposal calling for the institution of a default prevention pilot program that centers on student success. The college would hire mentors and program coordinators that will identify at risk students and provide them with the information and assistance in completing their degree requirements
A proposal calling for an outreach program for military personnel in areas where military bases are located
A proposal calling for the incorporation of skits by the theater arts majors on the consequences of default

HESC is proud to sponsor these and many other innovative default prevention activities.