2009-2010 - Bowie State University

Default Management Policy
Default is the failure to repay a loan in accordance with the terms of the promissory note. Default may
also result from failure to submit requests for deferment or cancellation on time. To facilitate the
management of the Direct and Perkins Student Loan Programs, Bowie State University has implemented
the following plan.
A. All Perkins loan borrowers must attend an entrance interview prior to receiving their
loans. Perkins Loan recipients must schedule an entrance interview with the Perkins
Loan Coordinator located in the Controller’s Office.
B. All Direct Loan borrowers are required to complete entrance counseling session on‐line
at www.studentloans.gov or at www.dlssonline.com.
C. The entrance interviews will include information on loan interest rates, grace periods,
penalty charges and fees, borrowers’ rights and responsibilities, deferment and
cancellation or postponement procedures, consolidation issues, and any other terms or
conditions of the loan.
D. Academic transcripts will be withheld for Perkins and Direct Loan defaulters.
E. All Perkins Loan recipients will be required to complete an exit interview. It will include
the information in the entrance interview and information on the average indebtedness
of loan recipients, information on the anticipated monthly repayment, a review of
repayment and consolidation options, and a review of the consequences of failure to
repay the loan. Perkins Loan recipients must schedule an exit interview with the Perkins
Loan Coordinator located in the Controller’s Office. Loan recipients will not be allowed
to graduate until they have completed the exit interview.
F. All Direct Loan recipients will be required to complete an exit interview on‐line at
www.studentloans.gov or at www.dlssonline.com.
G. It will include the information in the entrance interview and information on the average
indebtedness of loan recipients, information on the anticipated monthly repayment, a
review of repayment and consolidation options, and a review of the consequences of
failure to repay the loan. The exit interview for Direct Loan borrowers is available online
at www.studentloans.gov or at www.dlssonline.com.
H. Loan recipients will not be allowed to graduate until they have completed the exit interview.
I. The University will provide updated information to the various lenders and guarantors
as requested.
J. The University will forward delinquent (240 days past due) Perkins Loan accounts from
its billing agency to its collection agency. Prior to the collection agency submission (15‐
240 days past due), default prevention letters are sent out through the Billing Agency’s
Early Intervention Program. In addition, the Billing Agency will contact the local credit
bureau to report any delinquencies. The collection agency, using various collection
techniques (i.e., skip‐tracing, Tax Refund Intercept Program), will attempt to secure
payment on an account in default. If payment has not been made the account is
returned to the institution for assignment to the Department of Education.
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2009‐2010 Undergraduate Catalog