Email and text are the top two ways student loan borrowers want to be contacted by their loan servicers, according to a new survey conducted by San Diego-based loan servicing firm First Associates Student Loan Servicing.

Two-thirds of the respondents surveyed by First Associates Loan Servicing said they preferred email and text communication to other communication methods, the firm said.

Another top finding of the survey was 90% of respondents said they should be contacted the way they like the most.

“There's a big disconnect with many companies that operate in this market and borrowers, so it's no wonder that a lot of firms are struggling with high delinquency and default rates within the portfolios they service,” said David Johnson, CEO for First Associates Loan Servicing.

“Loan servicers must do a better job to recognize the numerous and changing consumer preferences and incorporate them into operations that drive enhanced performance for lenders and superior customer experiences for borrowers,” Johnson said.

Nearly 250 people responded to the survey, which First Associates Student Loan Servicing conducted over two separate, one-week periods in February and April, the firm said.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Natasha Chilingerian

Natasha Chilingerian has been immersed in the credit union industry for over a decade. She first joined CU Times in 2011 as a freelance writer, and following a two-year hiatus from 2013-2015, during which time she served as a communications specialist for Xceed Financial Credit Union (now Kinecta Federal Credit Union), she re-joined the CU Times team full-time as managing editor. She was promoted to executive editor in 2019. In the earlier days of her career, Chilingerian focused on news and lifestyle journalism, serving as a writer and editor for numerous regional publications in Oregon, Louisiana, South Carolina and the San Francisco Bay Area. In addition, she holds experience in marketing copywriting for companies in the finance and technology space. At CU Times, she covers People and Community news, cybersecurity, fintech partnerships, marketing, workplace culture, leadership, DEI, branch strategies, digital banking and more. She currently works remotely and splits her time between Southern California and Portland, Ore.

Lending