Overview
Decision-making in higher education is complex, requiring students to navigate academic, financial, and personal choices. Using Daniel Kahneman’s Thinking, Fast and Slow framework, this article explores how students primarily rely on Fast Thinking, referred to by Kahneman as “System 1” for immediate, intuitive decisions, often leading to errors. By integrating nudging strategies, institutions can encourage Slow Thinking or “System 2” to improve outcomes in areas such as FAFSA completion, course enrollment, and payment management. This research highlights how behavioral science can be applied to help students make informed choices.

 

Higher education presents students with a series of high-stakes decisions – financial aid applications, course selection, loan repayment, debt management and career planning. However, cognitive biases and the overwhelming nature of choices often result in suboptimal decision-making.

Daniel Kahneman’s dual-system theory of thinking provides insight into why students struggle with these decisions. Fast Thinking (System 1) operates automatically and emotionally, while Slow Thinking (System 2) is deliberate and logical but requires effort. Given the demands on students’ time and mental resources, they frequently default to Fast Thinking, making quick but sometimes flawed choices.

This brief explores how nudging interventions can bridge the gap between impulsive decision-making and well-reasoned choices, helping students navigate their educational journey more effectively.

Today’s Higher Education Landscape: A Perfect Environment for Fast Thinking

While foundational research on Fast and Slow thinking dates back decades, these concepts are more relevant today than ever before due to the increasing complexity of student decision-making in the modern higher education landscape.

Today’s Key Ingredients:

• Digital Overload: With the rise of online learning platforms, social media, and financial aid portals, students are bombarded with more information than ever. This cognitive overload leads to a greater reliance on Fast thinking for quick, heuristic-based decisions.
• Economic Uncertainty: Today’s students face rising tuition costs and greater financial pressure, making short-term, emotion-driven choices (Fast) more common than long-term financial planning (Slow).
• Instant Gratification Culture: Modern technology has conditioned students to expect immediate rewards, reinforcing present bias and making it harder to engage in slow, deliberate decision-making.
• Increased Decision Complexity: Higher education has seen an expansion in academic pathways, financial aid structures, and repayment plans, which increases decision fatigue and forces students to take mental shortcuts.

By recognizing how these modern factors amplify reliance on Fast Thinking, institutions can better tailor nudging strategies to ensure students engage System 2 thinking where it matters most.

Why Students Default to System 1 Thinking

Research supports several reasons why students often rely on Fast Thinking instead of engaging Slow Thinking for crucial decisions:

Cognitive Load and Overwhelm

• Sweller’s (1988) Cognitive Load Theory explains that when students are faced with too much information, their brains default to shortcuts (System 1) to preserve mental energy.
• Higher education decisions – such as choosing a major, selecting financial aid options, or managing debt – often feel overwhelming, leading students to rely on quick, automatic responses rather than deep analysis.

Decision Fatigue

• Baumeister et al. (1998) found that prolonged decision-making drains mental energy, making students more likely to rely on System 1 shortcuts rather than engage in effortful reasoning.
• Given the many daily choices students face, by the time they reach financial or academic decisions, they may lack the cognitive resources to analyze options deeply.

Present Bias & Instant Gratification

• Ariely (2010) and Loewenstein (1992) demonstrated that when choices involve immediate vs. delayed rewards, people – especially students – tend to favor the short-term option.
• This present bias means students may procrastinate on financial aid paperwork or choose an easy class over one that would benefit their long-term career.

Social Influence & Default Bias

• Thaler & Sunstein (2008) found that people tend to follow defaults and social norms rather than analyze all choices.
• Students often mimic their peers rather than engaging Slow Thinking when making major educational and financial decisions.

Lack of Immediate Feedback in Higher Ed Choices

• Kahneman & Tversky (1979) noted that decisions with delayed consequences (such as taking on student loans) encourage Fast Thinking reliance because students do not experience the outcomes immediately.
• Without immediate feedback, students may make choices based on emotion rather than long-term logic.

By understanding these tendencies, institutions can design nudging strategies that help shift students toward Slow Thinking for important decisions.

Efficiency Versus Effort: Understanding Fast & Slow Thinking

Fast Thinking is efficient and automatic but prone to errors. Slow Thinking is methodical and analytical but requires effort and motivation.

Common Fast Thinking Pitfalls in Higher Education:

• Procrastination: Ignoring FAFSA deadlines due to form complexity.
• Overconfidence Bias: Assuming student loans will be easy to repay without proper research.
• Status Quo Bias: Sticking with an undeclared major rather than exploring new options.
• Loss Aversion: Avoiding enrollment in challenging courses due to fear of failure.

When Slow Thinking is Essential:

• Loan Repayment Planning: Evaluating interest rates and repayment plans.

• Career Pathway Research: Analyzing potential salaries, job stability, and degree requirements.

• Course Load Balancing: Weighing credit hours against work and extracurricular commitments.

• Financial Aid Consideration: Comparing scholarships, grants, and loan options.

Since students often default to Fast Thinking, institutions must design interventions that prompt Slow Thinking engagement for crucial decisions.

Nudging: A Practical Solution to Make the Most of Fast Thinking

A subtle intervention that alters behavior in a predictable way without limiting choices is a nudge. Used with purpose, nudges can break down choices to make bigger decisions easier to navigate and guide students toward better decisions while keeping autonomy intact.

Key Nudging Strategies for Higher Education:

• Default Options: Opt-out enrollment in financial aid reminders and student success programs.
• Text Message Reminders: FAFSA completion nudges with personalized deadlines.
• Process Simplification: User-friendly financial aid and loan counseling tools.
• Social Norming: Showing that “85% of students in your major complete their FAFSA by this date.”
Studies show that these behaviorally informed interventions increase student engagement, persistence, and financial responsibility.

Inceptia’s Nudging-Driven Solutions:

To help students the most, Inceptia includes nudges in each solution to break down processes, remove barriers, and ease decision-making. Taking it a step further to improve the quality of the nudge, each solution has a target audience based on conditional logic or school input to ensure the correct messaging is delivered to the right student at the right time. This approach reduces today’s information clutter and helps students focus on what they need to do next. Additionally, our expert counselors specialize in the programs they support, allowing them to truly advocate for the best student outcomes.

Inceptia specializes in behaviorally-driven solutions to enhance student success by integrating research-backed nudging strategies into its financial aid, enrollment and admissions support services.

• Student Outreach Programs: Timely, targeted nudges to offer reminders and ensure timely submissions that also delivers insight to schools for future planning.
• Loan Summary, Grace Counseling Outreach, Repayment Counseling Outreach: Proactive insights into loan repayment and financial planning.
• Verification Gateway, SAP Advisor, PJ Advisor: Reducing complexity in financial aid processes to increase student follow-through.
• Financial Avenue: Helping students engage with top financial education topics through self-guided interventions.

Conclusion

The dual-system model of thinking helps explain why students often struggle with complex decisions. By integrating behavioral science and nudging strategies, institutions can support students in making more informed, responsible choices. Inceptia’s expert-driven, student-focused solutions create a decision-making environment that reduces barriers, breaks down tasks and encourages thoughtful action.

In an era where higher education success depends on both access and informed decision-making, Inceptia stands at the forefront of leveraging behavioral science to support students and institutions alike.

References

• Kahneman, D. (2011). Thinking, Fast and Slow.
• Thaler, R., & Sunstein, C. (2008). Nudge: Improving Decisions About Health, Wealth, and Happiness.
• Inside Higher Ed (2024). Study on the Effectiveness of Nudging for Student Success.

By Sue Downing, Senior Vice President & Officer, Inceptia

As of April 2025, the U.S. Department of Education has resumed aggressive collection efforts on defaulted federal student loans, including administrative wage garnishment (AWG). This policy change threatens millions of borrowers and poses significant challenges for higher education institutions. Financial aid administrators and institutional leaders must proactively support at-risk borrowers to mitigate these risks and uphold institutional integrity.

The Escalating Risk of Default

Following the expiration of pandemic-era protections, borrowers who are 270 days delinquent on federal student loans now face severe consequences, such as wage garnishment of up to 15% of disposable income and seizure of tax refunds through the Treasury Offset Program. These measures can lead to financial instability for borrowers and tarnish institutional reputations.

Institutional Accountability and Cohort Default Rates

The U.S. Department of Education monitors institutions' cohort default rates (CDRs), which reflect the percentage of borrowers defaulting within three years of entering repayment. High CDRs can result in sanctions, including loss of eligibility for federal student aid programs. Therefore, supporting borrowers in repayment is not only ethical but also essential for institutional sustainability.

Strategies for Supporting At-Risk Borrowers

1. Enhanced Financial Education Programs: Implement comprehensive financial education initiatives to equip students with budgeting skills and loan repayment strategies. Explore platforms such as Financial Avenue to bring online financial education programs to your student body.
2. Proactive Communication: Utilize tools like Repayment Counseling Outreach to identify and engage with borrowers at risk of default, providing personalized support and information on repayment options.
3. Collaboration with External Partners: Partner with organizations such as Inceptia, which specialize in default prevention, to offer tailored counseling and resources, enhancing the support network for borrowers.
4. Institutional Policy Reforms: Establish campus-wide committees involving faculty and staff to develop and implement strategies aimed at reducing default rates and promoting student success.

Conclusion

In the current landscape, where federal enforcement of student loan repayments has intensified, institutions must take decisive action to support borrowers. By implementing targeted strategies and fostering a culture of financial responsibility, financial aid administrators and institutional leaders can protect their students and uphold the institution's commitment to educational excellence.

 

Higher education is more than just earning a degree – it’s about preparing students for long-term success, both professionally and financially. A high student loan repayment rate isn’t just a metric for compliance; it’s a reflection of an institution’s dedication to student financial empowerment, career readiness, and overall institutional excellence. Schools that prioritize strong borrower repayment outcomes set their students up for lifelong financial success and distinguish themselves as leaders in student support.

Student Financial Empowerment and Success

A high student loan repayment rate signals graduates are thriving financially, successfully managing their student loan obligations, and achieving economic independence. By fostering strong financial habits early on, schools help students lay the foundation for a secure financial future.

Why It Matters:

• Higher repayment rates indicate graduates are building strong credit, improving financial stability, and reaching their professional goals.
• Students who manage their debt successfully are more likely to become engaged alumni who support their alma mater.

“Typically, when students weren’t repaying their loans it’s because they were unaware of how to pay the debt back and then would go into hiding. Inceptia stepped in when we couldn’t and made students aware of their repayment options and that made the difference.”

-Megan Hartless, Financial Aid Director, Blue Ridge Community College

Strengthening School-Student Partnerships

Rather than focusing on penalties for high default rates, institutions have an opportunity to highlight the support systems they have in place to guide students toward repayment success. Schools that actively invest in financial literacy and counseling create lasting partnerships with students beyond graduation.

Why It Matters:

• Providing proactive financial education fosters trust and long-term student success.
• Strong support systems ensure students understand their loan repayment options and make informed financial decisions.

“Our students come to us with varying backgrounds and we want them to be able to find their full selves while getting their education. Financial wellness plays a big roll.”

-Rhonda Lake, First-Year Advisor, Doane College

Institutional Proactivity vs. Reactivity

Rather than responding to high default rates as a crisis, schools that proactively address borrower success create a culture of financial well-being. Implementing financial literacy programs, personalized counseling, and repayment strategies ensures students are set up for success from day one.

Why It Matters:

• Preventative measures help students make informed borrowing decisions and avoid financial pitfalls.
• A proactive approach reflects a forward-thinking institution that prioritizes student success holistically.

Building a Stronger Workforce & Supporting Economic Mobility

Graduates who can successfully manage student loan repayment are more likely to advance in their careers, purchase homes, and contribute to economic growth. Strong borrower outcomes signal students are securing meaningful employment that supports financial stability.

Why It Matters:

• Low default rates reflect students are obtaining well-paying jobs post-graduation.
• Students who avoid default are more likely to purchase homes and contribute to local economies.
• Schools play a role in fostering upward economic mobility and strengthening the workforce.

Competitive Advantage for Enrollment & Retention

Parents and students increasingly evaluate institutions based on return on investment (ROI). Schools that demonstrate strong financial outcomes attract and retain students who seek a secure financial future.

Why It Matters:

• Students want to attend institutions that prioritize their long-term financial success.
• A strong repayment rate enhances an institution’s value proposition for prospective students and their families.

Institutional Excellence & Reputation

Schools with high repayment success rates stand out as leaders in student success and financial wellness. A high repayment success rate also reinforces an institution’s commitment to student outcomes, boosting its reputation among prospective students, parents, and stakeholders.

Why It Matters:

• Positive repayment trends signal that the institution equips students with the knowledge and tools to navigate financial decisions.
• Schools recognized for strong borrower outcomes can differentiate themselves in a competitive landscape.
• A report from the National Center for Education Statistics found that borrowers from institutions with strong repayment support services default at significantly lower rates than their peers.

A Future Built on Financial Stability

Maintaining a high student loan repayment rate is about more than just compliance – it’s a sign of an institution’s investment in student success. Schools that prioritize financial education, career readiness, and proactive support create an environment where graduates thrive, reinforcing their reputation and long-term impact.

“We believe that student success extends beyond the classroom. By equipping borrowers with essential financial tools and knowledge, we help institutions create a foundation for long-term financial stability and career growth."

-Sue Downing, Senior Vice President & Officer, Inceptia

At Inceptia, we partner with institutions to empower students with the tools and guidance they need to navigate repayment successfully. Through financial education initiatives, student engagement programs, and personalized support, we help schools keep borrowers on track and ensure a strong financial future for graduates. Investing in repayment success isn’t just about avoiding default – it’s about building a legacy of financial empowerment and opportunity for generations to come.

To find out how Inceptia services can help your students and school prosper, connect with us at TalkToUs@inceptia.org or visit www.inceptia.org.

Lincoln, Neb. (March 3, 2025) – Inceptia is pleased to announce the addition of Joe Jovell to its Business Development Team as the newest representative supporting higher education institutions in the New England territory. With over 25 years of experience in higher education finance, Joe brings deep expertise in financial aid, student success strategies, and institutional partnerships.

Throughout his career, Joe has built strong relationships with colleges and universities, helping them navigate the evolving landscape of student financial services. His background in field sales, account management, B2B marketing, and technical product support makes him an invaluable resource for schools seeking innovative solutions to enhance student access and financial well-being.

Adam Davy, Vice President of Business Development at Inceptia, emphasized the importance of additional support, stating, “The Northeast is home to a diverse range of institutions that play a critical role in shaping the future of higher education. Joe is the perfect fit, a native of Massachusetts and residing in New England, he is well positioned to support schools across the Northeast. We are excited to have Joe on board to strengthen our commitment to the region.”

Joe holds a Bachelor’s degree from Springfield College and has spent his career aligning institutional goals with financial aid solutions that empower students to make informed borrowing decisions. His passion for student success and institutional collaboration aligns perfectly with Inceptia’s nonprofit mission of supporting schools in fostering higher education completion and financial wellness.

Please join us in welcoming Joe Jovell to the Inceptia Business Development Team!

ABOUT INCEPTIA
Inceptia, a nonprofit organization, provides innovation and leadership in higher education access and success through engaging and empowering students and streamlining processes. While our name and solutions have evolved, Inceptia is pleased to bring more than 35 years of experience helping millions of students achieve their higher education dreams at schools nationwide. Our mission is to support schools in illuminating a path towards educational and financial success for students and families, allowing them to pursue their dreams of reaching their full potential. Our solutions are designed to support student success by helping schools maximize resources, so they can spend more time delivering meaningful learning experiences across the student lifecycle that fosters education and personal development.

By Deana Unger, Chief Operations Officer, Inceptia

For millions of Americans, the return of student loan payments has been anything but smooth. After more than three years of paused payments, many borrowers are struggling to find their footing again – and the data paints a troubling picture. An analysis of government data by VantageScore reveals that a staggering 43% of borrowers have yet to resume making payments. The consequences are already impacting their financial lives, with credit scores dropping and access to essentials like mortgages, car loans, and credit cards slipping further out of reach.

But beyond the numbers, there’s an even bigger issue: confusion. Many borrowers are unsure about what they owe, whether they qualify for repayment assistance, or if their loans may eventually be forgiven. Some even have expressed uncertainty about taking out their student loans in the first place. This time of ambiguity and change is making it harder for people to get back on track – pushing them deeper into financial distress just when they need stability the most.

A Perfect Storm of Misinformation and Delinquency

The root of this crisis lies in a perfect storm of rapid changes and inconsistencies in messaging. When federal student loan payments were first paused due to the pandemic, the relief felt like a lifeline. Over time, some assumed the pause would last indefinitely or that large-scale debt forgiveness would erase their balances. Even though the broad-based loan forgiveness has been ended, many still believe that relief is on the horizon.

Simultaneously, loan servicers have struggled to reconnect with borrowers. Some individuals have not understood payments were resuming, as notifications from servicers didn’t reach them due to outdated contact information. In some cases, they did not respond to telephone and other attempts because they didn’t recognize the servicer. Others simply didn’t understand what they needed to do to restart payments. As recently reported in the Wall Street Journal article, Steep Drop in Credit Scores Hits Student-Loan Borrowers, Shiloh Garcia, a nurse in California, thought her payments were still on hold – only to discover that her credit score had taken a significant hit due to reported delinquencies. Stories like hers are becoming all too common, and without intervention, many more borrowers will be blindsided by financial consequences they didn’t anticipate.

The Changing Landscape of Income-Based Repayment

For those struggling to make payments, income-driven repayment (IDR) plans, including the newly introduced SAVE plan, were designed to provide relief. However, even these programs are now facing uncertainty. There is increasing concern that IDR programs could be weakened or completely eliminated. If that occurs, millions of borrowers who depend on these plans to manage their payments could find themselves with a higher payment amount, which could result in a rise in delinquencies.

Inceptia Expertise

As a nonprofit dedicated to helping borrowers successfully repay their student loans, Inceptia is deeply concerned about the current state of the industry. With delinquency rates for schools as high as 40%, there is a clear need to provide empathy and guidance to borrowers are struggling. Firsthand, we’ve encountered borrowers who are completely unaware of their repayment obligations – some mistakenly believed their loans were forgiven, while others didn’t even realize they had taken out a loan. This highlights a critical gap in borrower’s understanding of their student loan repayment options. Borrowers need clear guidance and from a caring and dedicated resource to help them navigate repayment and regain financial stability. At the same time, institutions need a trusted partner to safeguard their reputation and ensure their financial aid programs remain in good standing.

Inceptia's Repayment Counseling Outreach program is designed to support borrowers during these difficult times. By helping each borrowers determine their best path forward through education and support, we help them succeed with long term and short-term solutions to their repayment issues, thereby reducing stress and preventing negative credit impacts. By providing personalized guidance, we help borrowers understand their repayment options, navigate income-driven plans, and resolve any confusion about their loans. With the right outreach and advocacy, we are making a tangible difference in the lives of borrowers and the institutions that serve them.

What Comes Next?

The solution isn’t a temporary fix – it’s proactive approach. By working with Inceptia, institutions can more effectively provide borrower outreach and clearer communication which will help implement sustainable solutions that genuinely assist borrowers in navigating repayment. Together we can and will do better in ensuring that borrowers understand where their loans are serviced, when they are due, how much they owe, and most importantly, how they can repay them in a manner consistent with their budget and responsibilities.

Learn more about Inceptia tools to manage repayment counseling at Inceptia.org, TalkToUs@inceptia.org or 888.529.2028.

If your Cohort Default Rate (CDR) looks low, you might assume your institution is in the clear. But the numbers tell a different story. An analysis of government data by VantageScore revealed 43% of borrowers are currently not making payments – and many have no plans to start. That means thousands of students are at risk of falling into delinquency, and your institution may be more vulnerable to rising default rates than you realize. While a low CDR might provide temporary reassurance, it doesn’t reflect the real-time repayment struggles many students face today. To truly understand the financial impact on your institution, you must monitor your delinquency rate – not just your CDR. What’s at Stake? A rising CDR isn’t just a number; it comes with serious financial and operational consequences for your institution:

• 15%+ CDR – Triggers multiple federal aid disbursements, increasing administrative burdens and complicating financial aid processing.
• 30%+ CDR for three years – Puts Pell Grant and Direct Loan eligibility at risk, threatening funding for your students.
• 40%+ CDR for even one year – Leads to immediate sanctions that could impact future enrollment and institutional reputation.

Without proactive intervention, delinquency rates will continue to rise, placing schools at greater risk of long-term financial consequences. Institutions must move beyond using CDR as a lagging indicator and instead adopt real-time tracking to identify and assist at-risk borrowers before defaults occur. Gain Visibility, Take Action The good news? You can start tracking now! Inceptia’s free, no contract required, delinquency tracking service provides secure, real-time insights into borrower repayment trends, empowering your institution to stay ahead of default risks. By leveraging NSLDS School Portfolio data, this service enables you to:

• Pinpoint your school’s true delinquency rate – not just your official CDR.
• Spot trends and risk factors before they impact your institution’s financial aid eligibility.
• Take strategic action to prevent defaults and safeguard your funding streams.
• Securely retrieve and analyze delinquency data to gain a clear picture of borrower repayment behavior.
• Assess your delinquency rate free of charge, with no risk or obligation.

Don’t Wait for the Numbers to Catch Up The stakes are too high to rely on outdated data. CDRs lag behind reality, meaning by the time defaults appear on your record, it’s too late to take preventive action. With proactive delinquency tracking, your institution can take control now – before rising defaults jeopardize your funding and your students’ financial futures. Beyond Tracking: Comprehensive Support for Schools Delinquency tracking is just one piece of the puzzle. Inceptia offers comprehensive solutions to help schools not only monitor delinquency rates but actively reduce default risk. From student loan repayment wellness programs to one-on-one borrower outreach, our tools empower schools to:

• Educate and support borrowers on repayment options
• Improve student financial literacy and repayment success
• Maintain compliance and protect institutional funding

Proactivity is key. The earlier you intervene; the sooner you can help a struggling borrower and the stronger your school’s financial future will be. Click here to start tracking now or for more information on Inceptia services, send us a message at TalkToUs@inceptia.org.

Lincoln, Neb. (December 11, 2024) – Inceptia, a leading nonprofit organization dedicated to supporting student success and financial wellness, is excited to announce a new system-wide contract with Virginia’s Community College System (VCCS). This contract ensures that all VCCS institutions have access to Inceptia’s Repayment Wellness solutions, offering tools to streamline processes, protect Cohort Default Rates (CDRs), and empower students to succeed.

 

Under this agreement, VCCS colleges can leverage Inceptia’s suite of Repayment Wellness tools:

• Grace Counseling Outreach: Supporting borrowers proactively before they enter repayment.
• Repayment Counseling Outreach: Helping delinquent borrowers get back on track and reduce default risk.
• Loan Summary: Keeping students informed of their debt while still in school to promote better financial decisions.
• Financial Avenue: Empowering students with online financial education that equips them with essential money management skills.

 

Inceptia has a current contract with VCCS to provide its Financial Aid Services product suite, including:

• Verification Gateway: Engaging students with a fully-automated, user-friendly platform to streamline financial
  aid verification.
• PJ Advisor: Managing special circumstances efficiently with an easy-to-use virtual platform.

 

“This system-wide agreement allows VCCS colleges to leverage Inceptia’s proven solutions to improve borrower outcomes, streamline financial aid processes and support students while also eliminating the need for each school to conduct their own RFP process. That saves time and resources while offering pre-approved pricing to all VCCS colleges,” said Laurie Owens, Director of Financial Aid.

 

“We are thrilled to expand our partnership with the Virginia Community College System,” said David Macoubrie, president and CEO, Inceptia. “This agreement underscores Inceptia’s commitment to supporting institutions with innovative solutions that reduce administrative burden and enhance the student experience.”

 

For more information on Inceptia’s solutions or to schedule a consultation, visit inceptia.org or email TalkToUs@inceptia.org

 

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.

 

 

The University of Nebraska–Lincoln (UNL) is committed to empowering students at every stage of their academic journey through access and support. With a focus on student-centered solutions, UNL prioritizes financial aid access as a cornerstone of enrollment management. Central to this mission is ensuring students complete the FAFSA, a critical step in securing financial support and advancing their educational opportunities.

Overcoming Competing Priorities

Despite a solid outreach process, UNL faced significant challenges. Husker Hub, the university’s one-stop financial and enrollment services center, was handling a high volume of in-person and virtual traffic. With the team short by four full-time staff members and a rise in minimum wage for student workers, creating budget constraints, the university struggled to maintain consistent, impactful outreach.

“We’re always committed to doing what’s best for our students,” shared Justin Chase Brown, Director of Scholarships & Financial Aid. “But with staff shortages and the increasing demands on our Husker Hub, we simply didn’t have the capacity to reach every student.”

UNL needed an efficient and effective, goal-driven solution to address these limitations without overburdening its resources.

Implementing a Targeted, Effective Solution

To meet these challenges, UNL partnered with Inceptia to implement the FAFSA Completion Outreach Program. This partnership allowed UNL to focus its efforts on specific groups of students while alleviating the workload on internal staff.

Using a multi-touchpoint approach, Inceptia engaged students through personalized communication, answered their questions, and encouraged FAFSA completion within a concentrated time frame.

“We started small with a pilot group of returning Pell-eligible students who hadn’t filed their FAFSA nor enrolled,” explained Justin. “The team at Inceptia helped us stay focused and ensured we reached students who needed it the most.” For the FAFSA Completion Outreach Program, UNL prioritized all new incoming students who had not yet filed a FAFSA and all enrolled returning students who were Pell-eligible the previous year who had not yet filed a FAFSA. This campaign was timed to begin shortly after the last day to add/drop courses (UNL census date) to boost FAFSA completion for enrolled students.

This structured, data-driven approach provided UNL the capacity to connect with students who might have otherwise been overlooked, delivering measurable results to demonstrate the program’s impact.

Proven Results

In just two weeks, the program began to demonstrate its value. Inceptia successfully contacted 683 students by phone, achieving an impressive 51% contact rate and a remarkable 75% email open rate. Upon completion of the outreach for the campaign, 10% of the prioritized students had already filed their FAFSA within the campaign period, with additional submissions anticipated.

The smaller pilot group of 116 returning Pell-eligible students yielded even stronger outcomes, which was 46 enrollments, highlighting the power of personalized outreach in driving student action.

“This program gave us the capacity and focus we needed,” Justin said. “It’s not just about numbers–it’s about ensuring every student gets the opportunity to succeed.”

A Scalable Investment in Partnership

UNL’s successful partnership with Inceptia underscores the value of collaboration and outsourcing in higher education. By leveraging a service partnership with external expertise, UNL achieved measurable results without overburdening its budget or internal resources.

Brown encourages other institutions to explore similar strategies: “Don’t hesitate to use every tool at your disposal. Grants, partnerships, and outsourcing can make a world of difference in ensuring students get the support they need without overloading your team.”

Looking ahead, UNL plans to expand these efforts, demonstrating that targeted outreach programs not only support individual students but also drive institutional success.

Discover the Difference FAFSA Outreach Can Make

To hear from Justin Chase Brown, Director of Scholarships & Financial Aid at the University of Nebraska-Lincoln, listen to this on-demand webinar as he answers questions from schools nationwide and dives deeper into FAFSA Completion Outreach.  

 

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.