NEWS RELEASE

July 11,2002

Alma Bowen 770-724-9018                                                                         

National Student Loan Default Prevention Day August 1

A college graduate in the United States usually leaves school with about $19,400 in student loan debt, according to a recent announcement by the General Accounting Office, an arm of the U.S. Congress. In an effort to assist both the students and the schools, the U.S. Department of Education will hold its second annual National Default Prevention Day on Aug. 1.

The day will include presentations of default prevention ideas and best practices in 12 locations, including Atlanta. More information and online registration is available at the Department of Education's Web site, http://ifap.ed.gov/eannouncements/0429NDPD.html. Information also is available by contacting Connie Kent at 800-735-8778, Ext. 6651, or email conniek@nslp.org. Registration for the event is not available at the presentation site.

"With a slowing economy and rising unemployment, effective delinquency and default prevention strategies and tools will be more important than ever to help keep student loan defaults from rising," said Bill Kohl, vice president of operations for the Department of Education.

New this year will be an individualized and customized report for each school representative attending. The report will contain a synopsis of the school's Cohort Default Rate, and a chart showing where the school could be if it were to reduce the number of borrowers in default by specified percentages. Data about institutions that are comparable in size, type, and location will allow schools to see how they compare with similar institutions. A "tool kit" designed to help schools reduce their rates will be included in participant materials.

Default prevention materials also are available from the Georgia Higher Education Assistance Corporation, Georgia's designated guaranty agency and a division of the Georgia Student Finance Commission.

Please contact Marcia Coleman, default prevention coordinator for GHEAC, at 770-724-9174 or at marciac@mail.gsfc.state.ga.us