Media Coverage

So Far So Good (October 25 2010)

"Just how many guarantee agencies will be able and willing to provide default prevention and other services that used to be add-ons to their very profitable student lending businesses—and to do so at a price the government is willing to pay —remains an open question. Several such agencies are openly angling for such arrangements, including American Student Assistance, whose president and CEO, Paul Combe, says that effective default prevention is more necessary than ever, given that 'salaries are dropping' for many Americans and 'higher education debt is growing faster than health care costs.'

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What to Do if You Can't Pay Student Loan Bills (October 19 2010)

"Are you a recent college grad staring down the barrel of an overwhelming student loan repayment, or even years out of school and still struggling to pay your monthly loan obligation? While putting off payments and hiding from bill collectors may seem like the only immediate solution, falling behind on your student loans can have serious financial impact. The good news is that there are several payment options to help struggling borrowers make their financial situation and repayment more manageable."

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Financial Literacy and Student Debt (September 15 2010)

"Joining the chorus of those understandably worried about education debt is American Student Assistance, a non-profit loan guarantor. ASA has just published a new report about student loans, “Approaching the Tippling Point,” that is both informative and very wrong."

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Business Is Up in Keeping Default Rates Down (July 7 2010)

“‘To really be an advocate for the borrower, you need to be a neutral third party’, says Paul Combe, president of American Student Assistance, an agency that guarantees student loans. ‘If it takes you 15 minutes to explain an income-based resolution and it only takes 2 minutes to talk about a forbearance, it’s going to go in that direction’…Companies that help colleges cut down on their defaults maintain that their foremost goal is to be advocates for students.…But Mr. Combe and other loan-industry experts say a desire for expediency can sometimes outweigh the best of intentions.…The fear is that colleges and the companies they hire can have a ‘very limited view of success’ that involves staving off high default rates only during the period being measured, says Michael T. Ryan, vice president of borrower services for American Student Assistance. It’s winning the game of ‘beat the clock’.”

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Financial Aid: Help Is on the Way (July 8 2010)

“For most families, the transition should be relatively seamless, says Allesandra Lanza, a spokeswoman for American Student Assistance, a Boston-based nonprofit that helps students and families manage higher education debt.‘People might not be aware that some of these changes have occurred, but I think schools and colleges are by and large ready for this,’ Lanza says.” The article also goes on to explore the changes to in-school consolidation and Income-Based Repayment.

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SouthCoast College Graduates Face Challenging Future (June 6 2010)

“‘I think across the board, you see more and more students applying for federal financial aid, and as a result, starting to see student loan amounts really grow,’ said Allesandra Lanza, corporate public relations manager for American Student Assistance, a Boston-based nonprofit student loan guarantor. Lanza attributed this to a variety of factors, including a dramatic rise in tuition costs and college savings hit by the bad economy.”

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With Direct Lending Ascendant Student Loans Adjust to New Reality (May 9 2010)

“Amid the upheaval, the biggest question mark is who will pay for borrower services, such as financial-literacy education, debt management, and default prevention, that student lenders and guarantors warned would vanish in the transition to the direct-loan program. The Education Department says guarantors and nonprofit lenders can apply for grants to provide such services under a program that is slated to receive $150-million over the next 5 years. Critics say that’s not enough to sustain the current level of services. ‘You can’t build a stable structure and business on that,’ says Paul Combe, president and chief executive of American Student Assistance, a Massachusetts guarantor. ‘It’s a one-shot thing.’ He argues that the federal government has an ‘obligation’ to finance debt-management programs over the long term. Still, Mr. Combe says, he is delighted that the conversation over student lending is finally shifting away from a debate between the direct-loan program and the bank-based program and toward how to best help students manage their debt. His agency was one of a handful of guarantors that was reimbursed by the federal government, under a contract that expired in 2008, for its success in preventing defaults. Mr. Combe has long said that guarantors should be ‘borrower advocates,’ not debt collectors.”

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One Month Later (May 11 2010)

“…in the words of one student loan guarantor (American Student Assistance), at least now the financial aid community is ‘shifting away from a debate between the direct-loan program and the bank-based program and toward how to best help students manage their debt.’ Yes, it’s about time.”

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What Does the Future Hold for Participants in the Federal Student Loan Programs? (April 1 2010)

“Meanwhile, in January, American Student Assistance (ASA) completed a major redesign of their website while highlighting their debt management mission going forward in this press release: American Student Assistance® (ASA), the leading, stand-alone nonprofit delivering higher education debt management services to students, today announced a major website re-launch and a new domain name. The move from www.amsa.com to the new domain of www.asa.org reinforces ASA’s standing as a trusted nonprofit that students and families can rely on for neutral, honest federal college loan solutions. The website refresh better aligns ASA’s Internet strategy with its public purpose mission: to help student loan borrowers successfully manage their education debt. ‘We believe this new look and feel, and explicit nonprofit identity, capture our commitment to the central issue impacting college students and their families, which is how to manage the debt that comes along with higher education today,’ said Susan Nathan, ASA’s vice president of consumer services.”

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The Need for Education Debt Management (October 28 2010)

"American Student Assistance recently released a paper on the need for education debt management.  The paper, 'Approaching the Tipping Point', raises a number of critical issues, including how to create incentives to encourage loan holders to communicate effectively, accurately and respectfully with student loan borrowers and provide neutral information about borrower options."

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Default Dilemma (February 10 2011)

“ 'Our federal policies are helping people to get into debt. We’re not willing to provide the service to help them afterwards,' said Paul Combe, president and CEO of American Student Assistance, a nonprofit student-loan guarantee agency. 'Right now, when we look at federal policy on [student-loan] debt management, it’s a one-size-fits-all. It’s a check-the-box.' ”

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Cuts in College Aid Loom (March 1 2011)

"There are some schools that are way in the stratosphere, some schools that are in the middle, some not so much. The more work you do on the front end in figuring out what's affordable and what's not, the better you are at the back end when you actually have to pay the bill,'' Fudge said—in particular, avoiding sticker shock in August when you finally realize just how expensive a school will wind up being after offers of financial aid or loans."

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Get Education About Student Loan Repayment Options (April 10 2011)

"A recent study of student loan holders showed that roughly 40% of them fall behind on payments or end up in default

"The effect of delinquency on a student loan is bad, but default is tragic, experts say."

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More College Graduates Are Delinquent on Repaying Student Loans (April 23 2011)

"’Many borrowers end up becoming delinquent or defaulting because they don't know all of the options available to them,’ said Debra Chromy, vice president of government services at nonprofit guaranty agency American Student Assistance. For example, she said, there are programs specifically for people who are unemployed and for teachers, as well as repayment programs that are based on the borrower's income level. Chromy said educating borrowers works, according to a company study that showed that American Student Assistance was able to cut delinquency rates in half by informing borrowers of the options available to them."

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A Greater Structural Problem: How the Student Loan Industry Works (April 7 2011)

"Internally, at ASA, it’s called proactive education debt management. This means getting a hold of the borrower before the major events occur, and make sure they have the information they need to make the right decision. We believe that all borrowers are working in good faith. We’re not trying to protect the federal government. We’re not trying to protect the lender. We’re trying to protect the consumer. The borrower wants to manage his debt. Very few people are trying to shirk it."

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The Student Loan Meltdown: What You May Not Know (April 9 2011)

"The Association of Private Sector Colleges and University held its program about “The Student Loan Meltdown” at Southern Methodist University in Dallas, Texas. The SABEW annual conference presented the program that shed light on startling facts about the 30 million Americans who are currently affected by student loan debts.

"The speakers of the conference were the CEO of the APSCU, Harris Miller, Paul Combe, Marty Steffens, and Mark Kantrowitz. The speakers all stressed the importance of obtaining a college education, as it is the finest route to employment.

"Paul Combe, from the American Student Assistance, said his organization works and helps loan borrowers after graduation."

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A Year After Bank-Based Lending's Demise a Shrunken Industry Redefines Itself (March 29 2011)

"American Student Assistance, which guaranteed loans in Massachusetts and the District of Columbia, has laid off about 75 staff members due to the reforms, said its chief operating officer, Michael Finn. But despite the reduction in funds, Mr. Finn said the organization will shift its focus toward loan counseling. ‘There's clearly a need out there for student-loan borrowers to get counseling and advice on how best to manage their student-loan debt,’ Mr. Finn said.”

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Graduation Advice: Take Charge of Your Student Loans (May 20 2011)

" There are still advantages to consolidating,' says Allesandra Lanza, spokeswoman for American Student Assistance. 'If you have loans with several different lenders, consolidating lets you combine all of your loans into one monthly payment. In addition, consolidating will extend repayment of your loans by up to 30 years, which will lower your monthly payments.' ”

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(This article also appears on the websites of ABC News and Pacific Daily News.)

The Dark Side of Student Debt (June 2011)

" ‘We see people who defaulted on loans in the 1970s and 1980s whose Social Security benefits are being garnished,’ says Paul Combe, of American Student Assistance, an agency that guarantees federal loans. Worse yet, old, neglected loans carry decades' worth of fees, interest and collection costs. ‘A $2,000 loan that defaulted 20 years ago is now $30, 000,’ says Combe.' ”

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(This article also appears on msn and the NASDAQ website.)

Office of Financial Aid Promotes Financial Literacy Among Students Recent Alumni (July 25 2011)

Rivier College spotlighted their new partnership with ASA on their website: “The Office of Financial Aid announced that it has been chosen to pilot a new program with the American Student Assistance (ASA), a Boston, Mass.-based non-profit agency that provides neutral information on student loan debt. Targeting graduates from the Classes of 2009-2011, ASA will offer student loan borrowers customized communications, including telephone and online support, to help these young graduates successfully manage their student loans.”  

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12 Tips for Implementing a Financial Literacy Program (July 20 2011)

“In one (NASFAA) session, Meaghan Hardy and Marsia Hill-Kreaime of Boston College and Gretchen Bonfardine of American Student Assistance shared some tools and tips for implementing a successful financial literacy program on campus.”

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Before You Sign for That Loan Get Educated (July 1 2011)

“About 30 million Americans have student loans right now they’re paying off. But how do you help minimize student loan debt? Paul Combe, president and CEO of American Student Assistance, and Allesandra Lanza of ASA weighed in on this topic and offered their advice. Combe says ASA’s mission as a nonprofit organization is to help students manage the education debt they get as they go through college. For Combe, it all comes down to communication.”

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Letters to the Editor (June 12 2011)

"A story headlined 'As debt mounts, few college students understand loan payoff process' (June 2), brings to light the biggest failing of our nation’s federal student aid program: Student loan borrowers have nowhere to turn for neutral advice on repayment after graduation...But there is a solution: Research by the nonprofit American Student Assistance shows that the mere act of proactively communicating with student loan borrowers and walking them through the necessary paperwork to select another payment plan can cut delinquency by 50 percent. Now we just have to make proactive communication and education for borrowers a priority in federal student aid.”

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Rising Tuition Bills a Growing Concern Among Parents (September 2 2011)

"The college year begins anew next week, and with it, the reality of rising school bills.

"Now that they’ve calculated the tuition, fees and extras, many families are figuring out whether — or how much — they’ll have to borrow.

"WBUR’s Bob Oakes talks with a financial aid adviser, Kevin Fudge, who works with the Boston-based nonprofit, American Student Assistance.

"But first we hear from a parent Kevin has helped, Altagracia de los Santos, who has decided not to take on a huge debt."

Hear the Interview

What Constitutes 'Middle Class' for Student Aid? (August 8 2011)

"When I asked higher education experts why a Congress full of budget hawks had spared Pell Grants from massive cuts next year by giving them $17 billion in the debt-ceiling deal, they told me it was because Pell Grants are unlike other social benefits in that they aren't intended solely for the poor. They are, in principle at least, intended to assist the middle class in sending their children to college. It's a goal that everyone agrees with, and more importantly, a benefit that impacts Republicans and Democrats alike. The same can't be said of welfare, Medicaid, or food stamps."

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Something Is Working in the College Pipeline (August 29 2011)

"College enrollment continues at record high levels. That's what the Pew Research Center found last week in a report on college enrollment and ethnicity. In October 2010, the United States hit an all-time high of 12.2 million college students between 18 and 24 years old. The jump was attributed entirely to a single-year, 24-percent surge in Hispanic enrollment, accounting for 1.8 million students. College enrollment for black students also reached its highest level, climbing to 1.7 million students. White students declined by 4 percent, although they still make up about three-fourths of the total college population."

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The New Hampshire Union Leader

“NASHUA — Rivier College’s Office of Financial Aid has been chosen to pilot a program that will offer critical student loan support and financial information to graduates. The new program, with American Student Assistance, a non-profit agency that provides information on student loan debt, will target graduates from the classes of 2009, 2010 and 2011. ASA will offer student loan borrowers customized communications, including telephone and online computer support, to help graduates successfully manage their student loans, according to a release. The partnership will also benefit current students, as ASA will be offering on-campus training and other support services as well.”

Tough Conversations: Talking About Student Debt—and Default—Across the Campus (September 22 2011)

“Debt repayment is no longer an issue for the financial aid office alone, and the discussion can no longer be put off until borrowers graduate. Campuses are buzzing about student debt in admissions, advising, and alumni offices.”

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Student Borrowers Have Another Option Before Defaulting on Loans (September 19 2011)

“Michael Ryan, vice president with American Student Assistance, which counsels borrowers, says the income-based repayment plan is useful for people who now aren't in a position to pay student loans, "but also not very likely to be better off six months or a year from now."

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An Early Educator's Dilemma: Balancing Educational Aspirations and Student Loan Burden

The report, An Early Educator's Dilemma: Balancing Educational Aspirations and Student Loan Burden (pdf, 2.78 MB), which included surveys and interviews with early childhood educators, points to student loan debt as a critical barrier to bringing high-quality teachers and staff to pre-school and day care centers where many children have their first learning experiences. Alarmingly, the study found that:

• One-third (32%) of the survey respondents with student loans reported that at least one of their loans was delinquent or in default or that they were unaware of their loan status.
• More than one-quarter (29%) of early educators with student loans were not aware of available courses of action—such as deferment, forbearance, and income-based repayment—for individuals with student loan repayment issues.
• Two-thirds (66%) of all survey respondents were unaware of any federal and/or state programs to forgive or erase a portion of student debt.

BTWIC plans to embark on a public awareness campaign for early childhood educators later this fall and winter, to spread the word about available repayment options in the federal student loan program to avoid or reverse default.

View the Full Press Release (doc, 0.03 MB)

Student Loan Relief Coming (October 26 2011)

"All of this is helpful, particularly so for borrowers with large debt burdens,’’ said Mike Ryan, vice president of student-loan experts American Student Assistance in Boston. “An extra half a percent on tens of thousands of dollars can make a significant savings for borrowers."

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Plan Hopes to Make Student Loans More Forgiving (September 19 2011)

"Currently, borrowers who qualify for the income-based repayment program can have loan payments capped at 15% of their discretionary income. After 25 years of qualifying payments, the balance of the loan will be forgiven. Under the administration's proposal, payments would be capped at 10% of discretionary income and forgiven after 20 years.

“However, this expanded relief would only apply to loans issued in 2012 or later, says Michael Ryan, vice president of American Student Assistance, a non-profit that helps borrowers manage their debt. Borrowers with loans issued before 2012 would be subject to the existing income-based repayment standards, he says."

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