Successful Student Loan Repayment through “Wellness”
American Student Assistance® takes a “Wellness,” or prevention-first, approach to helping families manage student loan repayment. We have negotiated with the U.S. Department of Education a special authority, called a Voluntary Flexible Agreement, to concentrate our efforts on default prevention. As a result, we have implemented specific outreach programs geared toward students and parents in every stage of college financing. We provide counseling on financial literacy, debt management, and repayment options throughout the entire life of the loan to ensure not only successful loan repayment, but also a shining individual credit record and holistic financial health.
Wellness Works
Wellness is revolutionizing the way Federal Family Education Loan guarantors service students and the higher education finance community, proving that ASA can offer real value throughout the student loan process. Our Wellness programs have produced dramatic results:
- – At just 1.5%, ASA’s 2005 cohort default rate is the lowest among all 35 of the nation’s FFELP guarantors, and well below the national average of 4.6%. Cohort default rates generally track borrowers in just their first 2 years of repayment.
- – An annual default “trigger” rate of just 1.13%, beating the national rate by an average of 44% over the past 5 years and exceeding default prevention performance goals set by the U.S. Department of Education. The trigger rate represents the total amount of loans in repayment in a guarantor’s portfolio that default in 1 year.
- – A taxpayer savings of over $40 million over the past 5 years, through prevented defaults and post-default recovery solutions that are a win-win for both borrowers and the government.
- – 95% of all loans in the ASA portfolio are currently not delinquent, or “in good standing.”
- – Research and development in best practices for affecting student loan borrower behavior. We have found that providing the right information at the right time makes a difference:
- – College graduates who received regular debt management and career advice throughout the first 2 years of repayment were half as likely to default.
- – Delinquency among students who dropped out before graduation, but received counseling on their repayment options, dropped by 27%.
- – Defaulted borrowers who were invited to join a special trial program to bring their loan back to good standing were 50% more likely to successfully complete rehabilitation.
For more information, please contact Allesandra Lanza at lanza@amsa.com or 617.728.4631.
Paul Combe
President and CEO
Biography
Paul Combe is the president and CEO of American Student Assistance. Paul came to ASA in May 1996 and has led the organization through a process of strategic change and renewal that refocused the organization and positioned it as a leader in higher education financing.
Throughout his tenure, Paul has been a strong advocate for Federal Family Education Loan guarantor agency reform and is a founding member and president of the National Association of Student Loan Administrators (NASLA). Under his direction, ASA refined its vision and mission to align with its public purpose of helping student loan borrowers manage higher education debt. Simply put, the organization has carved out a new role for the guarantor, one that centers its activities around proactively ensuring the financial “wellness” of the borrowers in its portfolio, rather than the traditional guarantor model of reinsurance and debt collection.
In February 2001, ASA entered into a Voluntary Flexible Agreement (VFA) with the Department of Education, focusing on student loan borrower financial “Wellness” and default prevention. Through the successful implementation of the VFA and Wellness initiatives, ASA has increased the number of loans in good standing in its portfolio, and achieved the second lowest cohort default rate of all guarantors.
Paul received his Bachelor of Arts and Master of Education Degrees from Framingham State College. He has spoken at numerous industry events and conferences, as well as spoken before members of Congress on making student debt more manageable.
To schedule an interview, please contact Allesandra Lanza at lanza@amsa.com or 617.728.4631.
Shelley Saunders
Vice President, Strategic Services
Biography
In her current role as American Student Assistance’s vice president of Strategic Services, Shelley Saunders serves as the organization’s primary contact for Congress, as well as for national organizations such as the American Council on Education, the American Association for State Colleges and Universities, the National Association of Student Loan Administrators (NASLA), and others. Her main focus is to educate the public policy making community on the positive results American Student Assistance has realized through its focus on student loan borrower financial Wellness.
In her 12-year career at American Student Assistance, Saunders has played an integral role in several of the organization’s global projects, including designing a new client-server based life-of-the-loan processing system and developing corporate strategy and tactics. She most recently held the position of vice president of Borrower Services.
Saunders has appeared on numerous Clear Channel radio broadcasts in the Washington, D.C. area. Her areas of expertise include the public purpose role of federal student loan administrators, as well as general facts about student loan origination and repayment.
To schedule an interview, please contact Allesandra Lanza at lanza@amsa.com or 617.728.4631.
Allesandra Lanza
Corporate Public Relations Manager
lanza@amsa.com
617.728.4631
Biography
In her current role, Allesandra Lanza oversees American Student Assistance’s media relations and corporate image. She has more than 10 years of experience at ASA, working with both student loan borrowers and the financial aid professionals who help them. She has:
- – answered students’ questions about their federal loans
- – conducted on-campus loan counseling sessions for students as they enter and exit school
- – and written communications for students about loan repayment, debt management, budgeting and more
Lanza is currently a member of the Eastern Association of Student Financial Aid Administrators. She has previously been a member of the Massachusetts Association of Student Financial Aid Administrators, serving as Newsletter Co-chair from 2002 to 2004. Lanza has a bachelor’s degree in Journalism from Boston University.
She has most recently appeared on Tufts University radio to promote American Student Assistance’s “Think About Tomorrow®” Tour, a fun and interactive on-campus event that educated college students on the benefits and responsibilities of student loans.
