Why your higher education institution needs a trusted loan servicing provider

It is hard to miss headlines about the staffing crisis in higher ed. Whether it’s due to budget cuts or burnout, across the industry personnel is decreasing and workload is increasing. Especially when it comes to student loans and financing, continuous changes are putting unprecedented strain on staff. How can leaders and administrators support their business office without adding headcount?

Working with a loan servicing provider benefits students and the operational efficiency of your institution. If you are feeling overwhelmed and have goals to improve the student experience, a student loan servicer combining technology and customer service can help lighten the load.

Three benefits for your students

For students, a loan servicing provider offers a clear, supportive experience. Feeling informed and engaged helps students feel confident, which improves their education journey and bolsters long-term retention.

#1: Enhanced transparency

While a loan servicer can absolutely make payments easier for students, not all providers deliver the same experience. For instance, with the wrong servicer, borrowers might face frustrations such as:

• A lack of timely reminders about upcoming payments
• No simple, user-friendly way to check on loan statuses
• Difficulty understanding documentation and required action

As a result, students fall behind on their payments and getting their degree feels like a distant, unachievable goal.

The right loan servicer will prioritize transparency. Many servicers have an intuitive online portal, which helps students:

• Review their payment plans
• See past transactions
• Get clear instructions if additional action is required

#2: Robust support

It’s inevitable something will go wrong at some point. Though no servicer can control when the occasional issue will arise, they can control how they respond to it. Customer service can make or break your students’ experience, so it’s important you choose a servicer that prioritizes reliable and attentive customer support.

Combining technology and the human touch shows students their experience matters. Your provider should offer a self-service, mobile-friendly website. According to research by TouchNet and College Pulse, 67% of students prefer mobile phones for managing financial information, and half already use digital student IDs. With the majority of students preferring mobile devices for financial communication, giving students the option to go mobile when working with a loan servicer is essential for effective support.

When issues arise, students should be able to contact a team of customer service advocates via live chat, text or phone. With the convenience of technology at their fingertips and live support just one message or call away, students will never be left in the dark.

A loan servicer shouldn’t just improve operations for your business office, they should help your students navigate their loan payments without the strain.

#3: Improved retention

Loan servicers and higher ed institutions can work together to help students continue their education. In the U.S., over 90% of students rely on more than one funding source to cover their tuition. The administrative burden of managing these funding sources — paired with the stress of actually making these payments — can be discouraging for students. In their overwhelm, they may not know what resources are available to help make their payments feasible.

With proper financial support, students will have the encouragement they need to stay in school. The right partnership can improve retention, helping both students and institutions meet their mission.

Three benefits for your higher ed institution

The advantages of the right loan servicing provider go beyond the students. With the more complicated (and sometimes tedious) issues being handled by a third party, your internal staff can spend more time on the work they’re passionate about and boost their efficiency, productivity and morale.

#1: Compliance made easy

Remaining in compliance with state and federal loan regulations is a consistent, complicated necessity. It can be tough for your business office to be ready to prove your institution’s compliance at a moment’s notice, while also staying informed of ever-changing regulations and state licensing requirements.

Utilizing a loan servicing provider gives your staff peace of mind. The right provider will not only comply with state and federal regulations, but monitor trends and update their systems and processes as soon as changes occur. They will also prioritize communication, ensuring clients and borrowers are up to speed on any regulatory shifts.

#2: Expansive expertise, flexible support

There are many types of student loans, and your loan servicer should be flexible to support your institution’s needs. An experienced servicer is an expert in the entire student loan landscape, including repayment plans and forgiveness options. Their expertise can provide the support borrowers require as they navigate their repayment journey.

Financial questions can’t wait, and your provider should be ready to answer them. Whether it’s a chat, text or phone call, the answers to complicated loan questions are at the ready 24/7. When personnel is limited and existing staff are stretched thin, your business office can take advantage of additional expertise — without additional stress.

Students can also use these communication channels, allowing the service provider to be the first point of contact, rather than overwhelming your business office. Staff can turn their focus to higher impact tasks, and students can get their questions answered quickly. Additionally, with the provider fielding questions, your staff will have a greater capacity to handle more nuanced financial matters with one-on-one student support.

#3: A better, smoother student experience

Paying for school is one of the biggest stressors for students, particularly if they’re having issues with their loans. If your business office is responsible for the initial phone calls checking in on late payments, it can sour the relationship between the student and your college or university.

A loan servicer can handle this communication instead, helping students get their issues resolved quickly while preserving their relationship with your business office.

Get help with student loan servicing today

ServicingSelect from ECSI simplifies loan servicing, reducing administrative workloads by automating tasks, streamlining paperwork and handling customer service. For more than 50 years, ECSI has been the gold standard for campus-based loan servicing in higher education. Our proprietary loan servicing solution flexes to meet the needs of your college or university — all while ensuring compliance and providing students with the experience they deserve.

Give your staff and students the support they need, without the cost of additional headcount. Schedule a call today.