Many schools may feel a false sense of security seeing their Cohort Default Rate (CDR) sitting at zero. However, now is not the time to sit back and relax. According to recent survey data, over 30% of borrowers are not making payments and have no plans to do so. This paints a stark reality: while a low CDR may look like a sign of financial health, it doesn’t tell the full story. Missed payments are already piling up, and unless schools take immediate action, those delinquencies will turn into defaults, directly impacting future CDRs – and the institution's financial and operational health.

 

The Danger of a Zero CDR

Right now, every school is benefiting from a zero CDR due to the COVID-19 repayment pause. But this is temporary. Beneath the surface, countless borrowers are struggling financially, and the return to repayment will bring a surge in delinquencies and defaults. The zero CDR you see today is no guarantee of future stability. Schools that fail to act now are setting themselves up for a sudden, potentially catastrophic rise in defaults.

 

The Consequences of Rising CDRs

When your CDR rises, the consequences can be severe. If your institution hits a 15% CDR, the Department of Education requires that you move from single to multiple disbursements for federal financial aid. This seemingly small change can cause significant disruptions for students, leading to delayed access to funds. Can you imagine how frustrated your students will be when their disbursements are delayed and split into multiple payments? This will inevitably result in a flood of customer service issues, putting enormous strain on your financial aid department and tarnishing the institution’s reputation.

Even more alarming, schools with a 30% or higher CDR for three consecutive years risk losing eligibility for federal student aid programs, including Pell Grants and Direct Loans. A single year with a CDR above 40% can lead to immediate sanctions. These penalties can devastate your institution’s ability to support students and maintain enrollment levels, with long-term financial repercussions.

 

Delinquency Rate: Your Window into Future CDR

To stay ahead, it’s imperative to check your delinquency rate in late December or early January, as this can provide a critical glimpse into what your 2023 CDR might look like. If your delinquency rate is high at that time, there’s a strong chance your future CDR will reflect this unless immediate action is taken. There’s only one year left to make a difference and lower that CDR before it solidifies. Schools that act now can still bring down those rates, but ignoring rising delinquencies will lead to inevitable spikes in defaults.

 

Why Delinquency Management Is Critical

If you’re only watching your CDR without addressing rising delinquencies, you’re missing the real issue. Delinquencies build silently before defaults, and ignoring them will lead directly to dangerous CDR spikes. By taking action now to manage delinquencies, you can protect both your students and your institution from these dire consequences.

 

The Time to Act Is NOW

Even if your CDR is zero today, the return to repayment means you cannot afford to wait. Schools need to take swift action to monitor delinquencies and support borrowers before defaults rise. The alternative is dealing with the costly impact of CDR increases and the operational headaches that come with it. Addressing delinquencies today can save your institution from losing federal aid eligibility and prevent chaos in your financial aid office.

 

How Inceptia Can Help You Stay Ahead

Inceptia offers comprehensive solutions to help schools proactively promote positive borrowing and manage delinquencies before they turn into defaults. From student loan repayment wellness programs to real-time data insights, Inceptia equips you to stay ahead of the curve – protecting students from future loan defaults and safeguarding your institution’s financial health.

Visit our Repayment Counseling Outreach page to learn more and connect with us with your questions.

   

Lincoln, Neb. (August 27, 2024) – Inceptia, a nonprofit organization dedicated to empowering students with financial knowledge, is launching a new addition to its long-standing series “Great Advice” with “Great Advice for College Students 2024.” This e-guide, created in collaboration with finance experts at Nerdwallet, is designed to equip college students with timely financial tips and tools in digital format, making it easier to integrate smart financial practices into their daily lives.

 

"Navigating college involves more than just academics and social life. It's about making smart financial choices that can impact your future," said Michelle Lisec-Talarico, Director of Marketing at Inceptia. "With ‘Great Advice for College Students,’ we aim to provide students with the insights they can use now to manage their money wisely, promoting a stronger foundation for their financial future."

 

Highlights from this issue include:

• What College Students Need to Know About Payment Apps: A comprehensive guide to understanding the security features and fees associated with popular payment apps, ensuring students can use these tools safely and effectively.
• 4 Ways to Turn the ‘Loud Budgeting’ Trend Into a Habit: Discover how the 'Loud Budgeting' trend can make budgeting fun and visible, transforming it into a regular part of your financial routine.
• Federal Student Loan Interest Rates Will Hit Some Record Highs: Stay informed about the rising federal student loan interest rates and learn how to manage your education funding effectively.
• How to Pick a College Bank Account as Carefully as You Pick a College: A guide to choosing the right bank account, helping students minimize fees and maximize convenience.

“Great Advice for College Students 2024” is available as an e-guide, allowing students to read, share, and save these articles to check back in whenever they need them.

View, share and save Great Advice for College Students 2024 here!

 

ABOUT INCEPTIA

Inceptia, enables colleges and universities to strengthen relationships and boost enrollment using dynamic tools and personal outreach programs that empower students to successfully navigate admissions and financial aid. With tailored solutions and a nonprofit’s commitment to service, we remove barriers for students so schools can focus on what matters most – guiding them toward a rich and rewarding life through higher education.

 

ABOUT NERDWALLET

NerdWallet (Nasdaq: NRDS) is on a mission to provide clarity for all of life’s financial decisions. As a personal finance website and app, NerdWallet provides consumers with trustworthy and knowledgeable financial information so they can make smart money moves. From finding the best credit card to buying a house, NerdWallet is there to help consumers make financial decisions with confidence. Consumers have free access to our expert content and comparison shopping marketplaces, plus a data-driven app, which helps them stay on top of their finances and save time and money, giving them the freedom to do more. NerdWallet is available for consumers in the U.S., United Kingdom, Canada and Australia.

 

“NerdWallet” is a trademark of NerdWallet, Inc. All rights reserved. Other names and trademarks used herein may be trademarks of their respective owners.

 

Lincoln, Neb. (July 23, 2024) – Inceptia is pleased to announce the appointment of Adam Davy as the new Vice President of Business Development. With nearly 15 years of sales leadership experience, Davy has a proven history of driving growth and achieving exceptional results through a strategic approach to sales, meticulous attention to metrics, and an unwavering focus on delivering outstanding outcomes.

 

“We are thrilled to welcome Adam Davy to our leadership team,” said David Macoubrie, president and CEO of Inceptia. “Adam’s extensive experience and strategic approach to sales make him the perfect fit for our organization.”

 

Davy joins us from Diligent, where he successfully led North American Sales. His impressive background also includes key roles at Brightbytes, Premier Learning, Amplify, and Education Elements.

 

"I am very excited to join the Inceptia team and further their mission to serve students, families and higher education institutions in the pursuit of improving lives through continued education. Our communities need knowledge, clarity and support in an increasingly complex world and Inceptia is playing a key role in this effort," said Davy.

 

Davy will be based in Denver and will play a crucial role in executing our sales strategy. He joins our exceptional Business Development Team who are committed to fully realizing our mission as a non-profit organization committed to helping students and families achieve their higher education dreams.

 

ABOUT INCEPTIA
Inceptia helps colleges, universities and trade schools strengthen relationships and boost enrollment using agile, dependable solutions that enable students to successfully navigate admissions and financial aid, borrow wisely and resolve their loan repayment challenges. With tailored solutions, a deeply knowledgeable staff and a nonprofit’s commitment to service, Inceptia serves as an extension of your team, empowering you to reach, influence and close the loop with students faster so you can focus on what matters most – student success.

 

Lincoln, Neb. (May 7, 2024) – Inceptia, a nonprofit organization dedicated to empowering students with financial knowledge, has announced the release of the latest addition to its “Great Advice” series of online e-guides. Developed in collaboration with personal finance experts at NerdWallet, “Great Advice for Grads 2024” is designed to assist recent graduates in navigating the transition to managing finances after college.

 

As thousands of graduates prepare to embark on the next phase of their lives post-college, the journey toward financial independence can often feel overwhelming. To address this challenge, Inceptia and NerdWallet have pooled their expertise to provide practical guidance on various aspects of personal finance, covering topics such as:

 

• Budgeting Basics: Establishing a budget tailored to individual needs, ensuring expenditures remain within income limits.
• Tackling Student Loans: Providing strategies for managing student loan repayment, including exploring repayment options and developing a personalized plan.
• Spring Cleaning Your Finances: Offering tips on streamlining bank accounts, consolidating accounts, and eliminating unnecessary fees to optimize financial efficiency.
• Building Generational Wealth: Encouraging early consideration of long-term financial goals with the understanding that balance is key.

 

“Mastering finances is a journey, not a destination,” remarks Michelle Lisec-Talarico, Director of Marketing at Inceptia. “We hope these articles emphasize the importance of seeking assistance and continuous learning as individuals navigate their financial paths, adjusting strategies as circumstances evolve. From Inceptia and NerdWallet, we aim to provide graduates with valuable insights to propel them in the right direction.”

 

“Great Advice for Grads 2024” is a concise resource available as a complimentary download, suitable for individuals seeking foundational knowledge or a refresher on managing their finances effectively.

 

ABOUT INCEPTIA
Inceptia, enables colleges and universities to strengthen relationships and boost enrollment using dynamic tools and personal outreach programs that empower students to successfully navigate admissions and financial aid. With tailored solutions and a nonprofit’s commitment to service, we remove barriers for students so schools can focus on what matters most – guiding them toward a rich and rewarding life through higher education.

 

ABOUT NERDWALLET
NerdWallet (Nasdaq: NRDS) is on a mission to provide clarity for all of life’s financial decisions. As a personal finance website and app, NerdWallet provides consumers with trustworthy and knowledgeable financial information so they can make smart money moves. From finding the best credit card to buying a house, NerdWallet is there to help consumers make financial decisions with confidence. Consumers have free access to our expert content and comparison shopping marketplaces, plus a data-driven app, which helps them stay on top of their finances and save time and money, giving them the freedom to do more. NerdWallet is available for consumers in the U.S., UK, Canada and Australia.

 

Lincoln, Neb. (March 7, 2024) – The “Great Advice” series of online e-guides is gathered by Inceptia, a nonprofit organization with a mission to empower students with financial knowledge. The latest addition to the series, Great Advice for FAFSA, specifically seeks to help students understand and manage the new FAFSA and its delay.

 

Crafted with the aim of empowering students to comprehend and manage the current state of FAFSA, this special edition of “Great Advice” provides insights and actionable tips for students grappling with the repercussions of FAFSA simplification.

 

"FAFSA simplification was envisioned to streamline the application process for students and families. However, despite its shorter format, delays have ensued, causing some turbulence," remarks Michelle Lisec-Talarico, Director of Marketing at Inceptia. "For first-time filers, the anticipation of financial aid hangs in the balance. Return filers, meanwhile, strive to focus on their studies amidst uncertainty about their financial assistance."

 

Lisec-Talarico emphasizes the ever present FAFSA-related discourse, stating, "Hardly a day passes without another article or announcement from associations, educational institutions, or media outlets regarding FAFSA. Fortunately, there is a collective commitment to offer guidance and understanding, despite the shifting timelines. “Great Advice for FAFSA” serves resource, providing an overview of the current FAFSA landscape and offering actionable guidance as the process evolves."

 

“Great Advice for FAFSA” represents Inceptia’s collaboration with the personal finance experts at NerdWallet to provide the most current information, including the state of the FAFSA.

 

"Great Advice for FAFSA" is a quick read available as a complimentary download for dissemination among all audiences seeking clarity on navigating the FAFSA process.

 

ABOUT INCEPTIA
Inceptia, enables colleges and universities to strengthen relationships and boost enrollment using dynamic tools and personal outreach programs that empower students to successfully navigate admissions and financial aid. With tailored solutions and a nonprofit’s commitment to service, we remove barriers for students so schools can focus on what matters most – guiding them toward a rich and rewarding life through higher education.

 

ABOUT NERDWALLET
NerdWallet (Nasdaq: NRDS) is on a mission to provide clarity for all of life’s financial decisions. As a personal finance website and app, NerdWallet provides consumers with trustworthy and knowledgeable financial information so they can make smart money moves. From finding the best credit card to buying a house, NerdWallet is there to help consumers make financial decisions with confidence. Consumers have free access to our expert content and comparison shopping marketplaces, plus a data-driven app, which helps them stay on top of their finances and save time and money, giving them the freedom to do more. NerdWallet is available for consumers in the U.S., UK, Canada and Australia.