American Student Assistance
Encyclopedia
American Student Assistance (ASA) is a non-profit services and advocacy organization dedicated to helping students and families manage higher education debt. It is headquartered in downtown Boston, Massachusetts.
local businesses for philanthropic donations with the idea of creating a pool of money to guarantee loans for higher education. MHEAC went on to become the nation’s first student loan guarantor. Its model of a student loan program—funded by local banks and insured by a non-profit organization—was replicated across the country and by 1965, there were 14 loan guarantors in the United States.
In 1990, the United States Department of Education
designated MHEAC as the guarantor for Washington, D.C.
By 1992, MHEAC had begun to expand its services nationwide, so the organization adopted a trade name of American Student Assistance to reflect that its services were available to U.S. student loan borrowers everywhere .
with the US federal government, changing its focus from back-end default collections
to an emphasis on delinquency and default prevention. The Voluntary Flexible Agreement enabled Federal Family Education Loan Program
guarantors to develop programs and techniques to help borrowers avoid student-loan default and all of its negative consequences. ASA’s Wellness program is designed to deliver debt management information to borrowers at critical points along the life of their loan in order to prevent repayment problems before they start. According to ASA studies, graduates who received financial literacy and career information from ASA during the first two years of repayment were half as likely to default
as those who did not, and ASA saved taxpayers approximately $120 million dollars through prevented student loan defaults between fiscal years 2001 and 2008.
The annual Cohort Default Rate
along with the annual default "trigger" rate that tracks the total amount of defaulted loans in a guarantor's portfolio, are important indicators of a guarantor's ability to keep its loan portfolio in good standing. In 2008, ASA claimed a Cohort Default Rate of 3.9%, well below the national rate of over 30%
In 2005, the company changed its tagline to "Think About Tomorrow."
ASA currently manages a portfolio worth more than $41 billion.
In 2008 and in 2009, Boston Business Journal
named ASA one of the best places to work in Boston and Boston Globe named ASA as a Top Place to Work in 2008, 2009 and 2010.
The company currently has approximately 500 employees.
Name change
American Student Assistance was founded in 1956 under the name Massachusetts Higher Education Assistance Corporation (MHEAC). The organization began when a group of people approached MassachusettsMassachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
local businesses for philanthropic donations with the idea of creating a pool of money to guarantee loans for higher education. MHEAC went on to become the nation’s first student loan guarantor. Its model of a student loan program—funded by local banks and insured by a non-profit organization—was replicated across the country and by 1965, there were 14 loan guarantors in the United States.
In 1990, the United States Department of Education
United States Department of Education
The United States Department of Education, also referred to as ED or the ED for Education Department, is a Cabinet-level department of the United States government...
designated MHEAC as the guarantor for Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
By 1992, MHEAC had begun to expand its services nationwide, so the organization adopted a trade name of American Student Assistance to reflect that its services were available to U.S. student loan borrowers everywhere .
Voluntary Flexible Agreement
In 2001, ASA became one of four guarantors to enter into a Voluntary Flexible AgreementVoluntary Flexible Agreement
The Voluntary Flexible Agreement was created by the United States Congress in 1998 during a reauthorization of the Higher Education Act of 1965. The VFA enables Federal Family Education Loan Program guarantors to develop programs and techniques to help borrowers avoid student-loan default and...
with the US federal government, changing its focus from back-end default collections
Collection agency
A collection agency is a business that pursues payments of debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed....
to an emphasis on delinquency and default prevention. The Voluntary Flexible Agreement enabled Federal Family Education Loan Program
Federal Family Education Loan Program
The Federal Family Education Loan Program was the second largest of the U.S. higher education loan programs . The FFEL was initiated by the Higher Education Act of 1965 and was funded through a public/private partnership administered at the state and local level...
guarantors to develop programs and techniques to help borrowers avoid student-loan default and all of its negative consequences. ASA’s Wellness program is designed to deliver debt management information to borrowers at critical points along the life of their loan in order to prevent repayment problems before they start. According to ASA studies, graduates who received financial literacy and career information from ASA during the first two years of repayment were half as likely to default
Default (finance)
In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant of the debt contract. A default is the failure to pay back a loan. Default may occur if the debtor is either...
as those who did not, and ASA saved taxpayers approximately $120 million dollars through prevented student loan defaults between fiscal years 2001 and 2008.
The annual Cohort Default Rate
Cohort Default Rate
A cohort default rate is the percentage of a school's borrowers who enter repayment on certain loans during a federal fiscal year and default prior to the end of the next one to two fiscal years...
along with the annual default "trigger" rate that tracks the total amount of defaulted loans in a guarantor's portfolio, are important indicators of a guarantor's ability to keep its loan portfolio in good standing. In 2008, ASA claimed a Cohort Default Rate of 3.9%, well below the national rate of over 30%
Looking forward
ASA is often cited as a reference for questions about student loans by national and local media.In 2005, the company changed its tagline to "Think About Tomorrow."
ASA currently manages a portfolio worth more than $41 billion.
In 2008 and in 2009, Boston Business Journal
Boston Business Journal
The Boston Business Journal is a weekly, business-oriented newspaper published in Boston, Massachusetts. It is published by the American City Business Journals....
named ASA one of the best places to work in Boston and Boston Globe named ASA as a Top Place to Work in 2008, 2009 and 2010.
The company currently has approximately 500 employees.