Broward College Reduces Student Loan Debt over Two-Year Period by $11.5 Million
Did you know, Broward College has helped our students reduce student loan debt by $11.5 million over the past two years? The college did this by initiating a comprehensive default-management program and participating in a federal experiment aimed at limiting unsubsidized federal student loans. We successfully decreased the number of borrowers of unsubsidized loans from 4,317 to 1,086, resulting in a reduction of unsubsidized student loan debt from $14,490,009 to $2,954,814, a nearly $11.5 million decrease to date.
Reducing loan debt is a major challenge for students pursuing higher education. Broward College students have been able to decrease their debt by exploring options for not taking on the debt in the first place, instead of a lump sum loan that commonly causes unnecessary burdens down the road.
Broward College’s comprehensive debt management program is designed to focus our staff actions on assisting students in:
- raising awareness of their borrowing practices,
- managing their personal finances, and
- budgeting more appropriately to manage their financial priorities.
Strategies of the default management program also include:
- staff monitoring the National Student Loan Database,
- engaging with Broward College students and graduates prior to repayment or default;
- checking the accuracy of the database of student defaulters and submitting challenges of the inaccurate information;
- setting a semester schedule of workshops for first-time loan borrowers;
- and distributing loans in multiple disbursements to allow for enrollment fluctuations.
In addition, the program requires all first-time loan borrowers, as well as students whose aggregated loan limits show high volumes of loan debt, to attend the debt management workshop prior to the disbursement of loans.
Our entire entire slate of resources on student financial options us available at www.broward.edu/financialaid