Financial Aid

at Latin Beauty Academy

Default Prevention Plan

Latin Beauty Academy is committed to assisting and educates students and parents about their loan repayment obligation, encouraging them for getting a successful repayment, and prevents delinquent repayment. Our institution employs evaluation, prevention, and outreach activities to work in advance to reduce the risk of default by our borrowers. The Institution’s Default Prevention Plan will allow to our school, as needed, in managing our cohort default rates. Our institution in this matter is focused on implement effective and easy tools that reduce defaults, promote student and school success, help preserve the integrity of the loan programs, and reduce costs to taxpayers are available to our school.

The objectives for our Institution’s Default Prevention Plan are:

Identify the factors causing the default rate to exceed the threshold.
Establish measureable objectives and the steps the institution will take to improve its cohort default rate.
Specify the actions the institution will take to improve student loan repayment.

‍

Latin Beauty Academy for during the later stages of enrollment and after students have left school, implements default prevention and management activities that help reduce defaults and help ensure borrower and school success.

Latin Beauty Academy has created a committee to address challenges and outline plan for preventing default. The activities of plan are focused on promote student and school success by increasing retention and reducing delinquency and default. Our institution has defined the challenge and trusts in its leadership, making the president and other administration and staff (all departments within the institution) aware of the risk.

Latin Beauty Academy, as needed, will create a data expert in order to provide statistical facts to identify common attributes of defaulted borrowers. In addition, as need it, the institution will obtain a copy of the NSLDS Borrower Default Summary Report (SCHDF1). Cross reference the defaulters with our internal data and seek key information such as in-school attributes (examples: GPA, early withdrawals, major, scholarships, or grants). These data elements will allow our institution to focus on risk. For example, is the average GPA lower for defaulters compared to non-defaulters? We understand how important is to know our possible delinquent borrowers. Our institution will be checking the ED School Portfolio Summary Report:

https://studentaid.ed.gov/sa/about/datacenter/student/portfolio

Latin Beauty Academy will be recognizing our cohort population (i.e., the number of students who, if they default, will change the cohort). We are knowledgeable to use the Federal Student Aid Cohort Default Rate Guide, which is a detailed explanation on how the cohort default rates are calculated.

The Guide is available online at Federal Student Aid’s Default Prevention Resource Information webpage. In addition, NSLDS Delinquent Borrower Report (DELQ01) provides the student’s demographic data including address, phone numbers and email address, as well as loan data including date, type, total outstanding balance, and current monthly payment amount. NSLDS School Repayment Information Loan Record Detail Report (DRC016), which helps to identify the entire cohort population.

Our faculty, from the classroom, promotes in the students be responsible with his/her loan making on time payments, as well as our administration use the resources from the Department of Education, such as:

https://studentloans.gov/myDirectLoan/index.action

http://www.ifap.ed.gov/DefaultManagement/DefaultManagement.html

http://ifap.ed.gov/DefaultPreventionResourceInfo/

https://ifap.ed.gov/ifap/byNSLDSType.jsp?type=NSLDS%20Record%20Layouts&set=archive

‍

Latin Beauty Academy ensures data accuracy and employ effective loan counseling and default prevention and management techniques to aid students through the following resources:

FSA Assessments for Default Prevention and Management

* http://www.ifap.ed.gov/qamodule/DefaultManagement/DefaultManagement.html

Loan Counseling Students and Counselors

* http://www.studentaid.ed.gov

The Student Guide and NSLDS for Students

* http://www.studentaid.ed.gov

How much will it cost?

* http://nces.ed.gov/ipeds/cool/

* http://www.dlssonline.com/tools/search.asp (for Direct Loan Borrowers)

How will student pay for the loan?

* http://studentaid.ed.gov/students/publications/student_guide/index.html

Will student make enough money to repay his/her loans?

* http://www.bls.gov/search/ooh.asp?ct=OOH

* http://data.bls.gov/PDQ/outside.jsp?survey=nc

Repaying Student Loans

* http://www.studentaid.ed.gov/students/publications/repaying_loans/index.html

Ombudsman Office

* http://www.ombudsman.ed.gov

Ensuring Student Loan Repayment Best Practices for Schools

* http://www.ifap.ed.gov/eannouncements/0119stuhbkbestprectice.html

SFA Assessments for Schools

* http://www.ifap.ed.gov/IFAPWebApp/qualityassurance/SFAAssessment.jsp

Mapping Your Future

* http://www.mapping-your-future.org

Jump Start Coalition for Personal Financial Literacy

* http://www.jumpstart.org

Enrollment Reporting and Data Accuracy NSLDS Enrollment Reporting Guide, formerly SSCR User’s Guide

* http://www.ifap.ed.gov/nsldsmaterials/010904NSLDSEnrollRepGuide.html

NSLDS Date Entered Repayment Report, School Repayment Information Loan Detail Report, and Enrollment Reporting Summary Report

* https://www.nsldsfap.ed.gov

NSLDS Reports, requesting and formatting questions

* https://www.nsldsfap.ed.gov Reports Tab

NSLDS User ID

* CPS/WAN Technical Support 1-800-330-5947

* NSLDS Customer Support 1-800-999-8219

Cohort Default Rate Guide for information on challenges, adjustments, and appeals

* http://ifap.ed.gov/DefaultManagement/DefaultManagement.html

Default Prevention FSA Assessments

* http://www.ifap.ed.gov/qamodule/DefaultManagement/DefaultManagement.html

Ensuring Student Loan Repayment Best Practices

* http://www.ifap.ed.gov/eannouncements/0119stuhbkbestprectice.html

NSLDS Reports and Exit Counseling

* https://www.nsldsfap.ed.gov

NSLDS Reports, requesting and formatting questions

* https://www.nsldsfap.ed.gov Reports Tab

NSLDS User ID

* CPS/WAN Technical Support 1-800-330-5947

* NSLDS Customer Support 1-800-999-8219

Late Stage Delinquency Assistance (LSDA) Guide:

* For Direct Loan Schools, Direct Loan Servicing/Schools website, accessed via COD website http://www.cod.ed.gov

For FFEL Schools, Default Prevention Strategies

* http://www.ifap.ed.gov/qamodule/DefaultManagement/DefaultManagement.html

* or contact your guaranty agency

General Connections/Publications Information for Financial aid Professionals (IFAP) Library with publications, training, tools, references, laws, etc.

* http://www.ifap.ed.gov

The Office of Federal Student Aid

* http://www.ed.gov/about/offices/list/fsa/index.html

The Student Guide

* http://www.studentaid.ed.gov

NSLDS

* https://www.nsldsfap.ed.gov or https://www.nsldsfap.ed.gov/secure/logon.asp

ED Pubs, the Department of Education Online Publication Ordering System, helps students identify and order free publications from the Department. Examples of resources available at ED Pubs include the following:

Repaying Your Student Loans (in English and Spanish)
The Student Guide
Getting Ready to Pay for College
Counselors and Mentors Handbook

www.edpubs.org

1-877-4ED-Pubs or edpubs@inet.ed.gov

U.S. Department of Education Default Prevention and Management Team

Latin Beauty Academy Also Advises to Our Borrower Students Based on the Following:

‍Questions/Answers:

When it comes time to start repaying your student loan(s), you can select a repayment plan that’s right for your financial situation. Generally, you’ll have from 10 to 25 years to repay your loan, depending on which repayment plan you choose.

Standard Repayment

With the standard plan, you’ll pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you’ll have up to 10 years to repay your loans. Your monthly payment under the standard plan may be higher than it would be under the other plans because your loans will be repaid in the shortest time. For that reason, having a 10-year limit on repayment, you may pay the least interest. To calculate your estimated loan payments, go to the Standard Repayment plan calculator.

Extended Repayment

Under the extended plan, you’ll pay a fixed annual or graduated repayment amount over a period not to exceed 25 years. If you’re a FFEL borrower, you must have more than $30,000 in outstanding FFEL Program loans. If you’re a Direct Loan borrower, you must have more than $30,000 in outstanding Direct Loans.

This means, for example, that if you have $35,000 in outstanding FFEL Program loans and $10,000 in outstanding Direct Loans, you can choose the extended repayment plan for your FFEL Program loans, but not for your Direct Loans. Your fixed monthly payment is lower than it would be under the Standard Plan, but you’ll ultimately pay more for your loan because of the interest that accumulates during the longer repayment period.

This is a good plan if you will need to make smaller monthly payments. Because the repayment period will be 25 years, your monthly payments will be less than with the standard plan. However, you may pay more in interest because you’re taking longer to repay the loans. Remember that the longer your loans are in repayment; the more interest you will pay. To calculate your estimated loan payments, go to the Extended Repayment plan calculator.

Graduated Repayment

With this plan, your payments start out low and increase every two years. The length of your repayment period will be up to ten years. If you expect your income to increase steadily over time, this plan may be right for you.

Your monthly payment will never be less than the amount of interest that accrues between payments. Although your monthly payment will gradually increase, no single payment under this plan will be more than three times greater than any other payment. To calculate your estimated loan payments, go to the Graduated Repayment plan calculator.

Income Based Repayment (IBR) – Effective July 1, 2009

Income Based Repayment is a new repayment plan for the major types of federal loans made to students. Under IBR, the required monthly payment is capped at an amount that is intended to be affordable based on income and family size. You are eligible for IBR if the monthly repayment amount under IBR will be less than the monthly amount calculated under a 10-year standard repayment plan. If you repay under the IBR plan for 25 years and meet other requirements, you may have any remaining balance of your loan(s) cancelled. Additionally, if you work in public service and have reduced loan payments through IBR, the remaining balance after ten years in a public service job could be cancelled. For more important information about IBR go to IBR Plan Information.