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Default Prevention and Management Plan

The University of Leeds ‘Default Prevention and Management Plan’ contains information to inform and increase our students’ understanding about the responsibilities of borrowing US Federal Aid, namely William D. Ford Federal Direct Loans, to fund their education to help reduce the number of students who default on their loan repayments.  

Entrance counselling  

The US Title IV regulations require all students who want to access US Federal Aid, including new and continuing students, to undertake Entrance Counselling.  Entrance Counselling will:  

  • explain how the Master Promissory Note (MPN) works  
  • emphasise the importance of repayment  
  • describe the consequences of defaulting on the loan  
  • provide borrowers with sample monthly repayment amounts.  

Detailed instructions are sent from the University of Leeds Funding Team to prospective students about how to access the entrance counselling.  Entrance Counselling must be undertaken before commencement and confirmation of completion will be retained in the student’s file.  

Early identification and counselling for students at-risk  

Students who are considering leaving the University of Leeds are provided with support to help guide them through the process, including: understanding the reason for leaving; considering options and implications; communicating the final decision, and completing a formal request.  More information about the University of Leeds procedure can be found at Taking Time Out or Leaving Early.   

Student borrowers who withdraw from their programme early, or do not meet the standards of satisfactory academic progress are generally referred to as ‘at-risk’. When supporting at-risk students the causes of withdrawal or unsatisfactory academic progress will be examined and the University will work with the student to resolve these matters.  

The aim of early identification and support is to enable more borrowers to complete their educational programme, as this is known to result in a higher retention rate for the University and lower the number of default borrowers.  

Communication  

Communication across the University is a vital component to ensuring, integration, progress, successful outcomes and completion. A wide variety of methods and tools are utilised to ensure inclusive, timely and effective communication.    

Procedures are in place to ensure effective communication in relation to registration, enrolment, academic progress, and attendance.  Processes are reviewed and updated annually.  Registration status, enrolment data, and academic progression are held on a central student record system (Banner) which is accessible by all relevant individuals and services across the institution using secure username and password login.  

US Federal Aid students are communicated with regularly and directly to provide necessary and updated information.  They are provided with contact details to Student Funding, US Loan admin, to enable direct business hour access.  Information that is a mandatory foreign school requirement is communicated directly as part of the annual loan approval process, and it is available at Consumer Disclosure and Return of Title IV Funds.  

Students are required to provide contact details, including emergency and next of kin as part of the annual registration process.  Secure online access to update this information is available throughout the academic year.  

Exit counselling  

Regulations require that students, following graduation, withdrawal or where they become ineligible for US Federal Aid, are required to complete Exit Counselling. Exit Counselling is known to be an effective way to help prevent loan repayment default and will assist with:  

  • clarifying any misconceptions about loan obligations
  • re-emphasising the consequences of default.  

Detailed instructions are sent from the University of Leeds Funding Team to students about how to access the exit counselling.  A copy of the Exit Counselling will be retained in the student’s file.  

Timely and accurate enrolment reporting  

The University of Leeds has in place policy, processes, systems and people to ensure accurate and timely enrolment updates are reported to the US Department of Education via NSLDS within the prescribed timeframe.   

Analyse defaulted loan data to identify defaulter characteristics  

Defaulted Loan Data reports will be reviewed and analysed to determine who is defaulting and the reason why.  Any identified patterns and common characteristics will be used to improve internal processes and to introduce preventative action.    

Maintain contact with former students  

The University of Leeds Advancement Team maintains contact with Leeds Alumni (Former Students).  

Tools and activities for institutions

The University of Leeds will make use of the following 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?   

FSA Assessments for Default Prevention and Management

Loan counselling   

Enrolment reporting and data accuracy   

Default prevention   

General connections/publications   

Contact information  

For enquiries about this document or about US Federal Aid, please email the Student Funding US Loans team at sesuslns@leeds.ac.uk. We are open Monday to Friday, 9am - 5pm.  

Fees and funding