Default Prevention and Responsible Borrowing

Approximately 13.7% of NOVA students borrowed a student loan in 2014-2015 to help finance their educational expenses according to data compiled by NOVA’s Office of Institutional Research.  While this is a relatively low percentage of the student population, the college is committed to encouraging responsible borrowing and reducing the number of students who default on their loans.

By partnering with Inceptia, we have assisted over 1,300 former NOVA students in getting all of their delinquent student loans back into good standing within the last four months.  The efforts of the Default Prevention Committee have also helped reduce the college’s Cohort Default Rate (CDR) from 13.6% in FY2011 to 12.0% in FY2012 (the two most recent periods for which data is available).  This indicates a reduction in the percentage of NOVA borrowers defaulting on their student loans within three years after entering repayment.

Per federal regulations, students must complete the Master Promissory Note (MPN) and Entrance Counseling at www.studentloans.gov before receiving a Federal Direct Stafford Loan, and they must complete Exit Counseling upon leaving school.  Borrowers are also encouraged to use NOVA’s Loan Planning Form to review their loan histories, determine the impact of additional borrowing, and to start planning how they will repay their student loans.

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