Retention Management Quotes

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Two things happen when your objectives are too broad—you don’t achieve the right results and you lose a lot of your resources. You want to avoid both of those.
Pooja Agnihotri (Market Research Like a Pro)
If your objectives are too broad, they can dilute your project.
Pooja Agnihotri (Market Research Like a Pro)
Discovering a cure for a disease is one thing, but making that cure available to everyone so it can actually be used to eradicate the problem is another thing.
Pooja Agnihotri (Market Research Like a Pro)
If the research is done for brand awareness and the results don't show any rosy picture, then maybe you want to share those results with your marketing head who can include more brand awareness strategies in her marketing plan.
Pooja Agnihotri (Market Research Like a Pro)
Information is a significant component of most organizations’ competitive strategy either by the direct collection, management, and interpretation of business information or the retention of information for day-to-day business processing. Some of the more obvious results of IS failures include reputational damage, placing the organization at a competitive disadvantage, and contractual noncompliance. These impacts should not be underestimated.
Institute of Internal Auditors
It’s really simple. People what to be where they feel valued and where they have the full capacity to provide value. When people have that, they stay. When they don’t, they leave. Companies that provide this to employees experience retention. Companies that don’t, experience attrition.
Hendrith Vanlon Smith Jr. (Business Essentials)
I often see teams that maniacally focus on their metrics around customer acquisition and retention. This usually works well for customer acquisition, but not so well for retention. Why? For many products, metrics often describe the customer acquisition goal in enough detail to provide sufficient management guidance. In contrast, the metrics for customer retention do not provide enough color to be a complete management tool. As a result, many young companies overemphasize retention metrics and do not spend enough time going deep enough on the actual user experience. This generally results in a frantic numbers chase that does not end in a great product.
Ben Horowitz (The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers)
If you estimate that the wage of the average store employee is $18,000 and that the cost of finding, hiring and training each new employee is 1.5 times his salary, then the total cost to the company for the different levels of retention between the two groups is $18,000 x 1.5 x 1,000 = $27,000,000. And that’s just the hard cost. The drain of experienced employees who have developed valuable relationships with their customers and their colleagues is harder to measure but is just as significant a loss.
Gallup Press (FIRST, BREAK ALL THE RULES: What the World's Greatest Managers Do Differently)
HR can and should serve as advisors to organizational leadership to develop strategic workforce plans that link to the organization’s strategic plan to ensure that the right people are on board so that the firm can meet its objectives and fulfill its mission. HR partners with line management to provide development opportunities to maximize the potential of each and every employee. HR advises management on total rewards programs (compensation and benefits) and rewards and recognition programs designed to minimize costly employee turnover and to maximize employee engagement and retention.
Barbara Mitchell (The Big Book of HR)
Manage Your Team’s Collective Time Time management is a group endeavor. The payoff goes far beyond morale and retention. ILLUSTRATION: JAMES JOYCE by Leslie Perlow | 1461 words Most professionals approach time management the wrong way. People who fall behind at work are seen to be personally failing—just as people who give up on diet or exercise plans are seen to be lacking self-control or discipline. In response, countless time management experts focus on individual habits, much as self-help coaches do. They offer advice about such things as keeping better to-do lists, not checking e-mail incessantly, and not procrastinating. Of course, we could all do a better job managing our time. But in the modern workplace, with its emphasis on connectivity and collaboration, the real problem is not how individuals manage their own time. It’s how we manage our collective time—how we work together to get the job done. Here is where the true opportunity for productivity gains lies. Nearly a decade ago I began working with a team at the Boston Consulting Group to implement what may sound like a modest innovation: persuading each member to designate and spend one weeknight out of the office and completely unplugged from work. The intervention was aimed at improving quality of life in an industry that’s notorious for long hours and a 24/7 culture. The early returns were positive; the initiative was expanded to four teams of consultants, and then to 10. The results, which I described in a 2009 HBR article, “Making Time Off Predictable—and Required,” and in a 2012 book, Sleeping with Your Smartphone , were profound. Consultants on teams with mandatory time off had higher job satisfaction and a better work/life balance, and they felt they were learning more on the job. It’s no surprise, then, that BCG has continued to expand the program: As of this spring, it has been implemented on thousands of teams in 77 offices in 40 countries. During the five years since I first reported on this work, I have introduced similar time-based interventions at a range of companies—and I have come to appreciate the true power of those interventions. They put the ownership of how a team works into the hands of team members, who are empowered and incentivized to optimize their collective time. As a result, teams collaborate better. They streamline their work. They meet deadlines. They are more productive and efficient. Teams that set a goal of structured time off—and, crucially, meet regularly to discuss how they’ll work together to ensure that every member takes it—have more open dialogue, engage in more experimentation and innovation, and ultimately function better. CREATING “ENHANCED PRODUCTIVITY” DAYS One of the insights driving this work is the realization that many teams stick to tried-and-true processes that, although familiar, are often inefficient. Even companies that create innovative products rarely innovate when it comes to process. This realization came to the fore when I studied three teams of software engineers working for the same company in different cultural contexts. The teams had the same assignments and produced the same amount of work, but they used very different methods. One, in Shenzen, had a hub-and-spokes org chart—a project manager maintained control and assigned the work. Another, in Bangalore, was self-managed and specialized, and it assigned work according to technical expertise. The third, in Budapest, had the strongest sense of being a team; its members were the most versatile and interchangeable. Although, as noted, the end products were the same, the teams’ varying approaches yielded different results. For example, the hub-and-spokes team worked fewer hours than the others, while the most versatile team had much greater flexibility and control over its schedule. The teams were completely unaware that their counterparts elsewhere in the world were managing their work differently. My research provide
Anonymous
I regularly see good people who excel at many aspects of selling (relationship management, customer service, problem solving, or client retention) dramatically underperform when it comes to acquiring net new business.
Mike Weinberg (New Sales. Simplified.: The Essential Handbook for Prospecting and New Business Development)
FOCUSING TOO MUCH ON THE NUMBERS In the second example, I managed the team to a set of numbers that did not fully capture what I wanted. I wanted a great product that customers would love with high quality and on time—in that order. Unfortunately, the metrics that I set did not capture those priorities. At a basic level, metrics are incentives. By measuring quality, features, and schedule and discussing them at every staff meeting, my people focused intensely on those metrics to the exclusion of other goals. The metrics did not describe the real goals and I distracted the team as a result. Interestingly, I see this same problem play out in many consumer Internet startups. I often see teams that maniacally focus on their metrics around customer acquisition and retention. This usually works well for customer acquisition, but not so well for retention. Why? For many products, metrics often describe the customer acquisition goal in enough detail to provide sufficient management guidance. In contrast, the metrics for customer retention do not provide enough color to be a complete management tool. As a result, many young companies overemphasize retention metrics and do not spend enough time going deep enough on the actual user experience. This generally results in a frantic numbers chase that does not end in a great product. It’s important to supplement a great product vision with a strong discipline around the metrics, but if you substitute metrics for product vision, you will not get what you want.
Ben Horowitz (The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers)
The Importance of Becoming Metacognitively Sophisticated as a Learner Whatever the reasons for our not developing accurate mental models of ourselves as learners, the importance of becoming sophisticated as a learner cannot be overemphasized. Increasingly, coping with the changes that characterize today’s world—technological changes, job and career changes, and changes in how much of formal and informal education happens in the classroom versus at a computer terminal, coupled with the range of information and procedures that need to be acquired—requires that we learn how to learn. Also, because more and more of our learning will be what Whitten, Rabinowitz, and Whitten (2006) have labeled unsupervised learning, we need, in effect, to know how to manage our own learning activities. To become effective in managing one’s own learning requires not only some understanding of the complex and unintuitive processes that underlie one’s encoding, retention, and retrieval of information and skills, but also, in my opinion, avoiding certain attribution errors. In social psychology, the fundamental attribution error (Ross, 1977) refers to the tendency, in explaining the behaviors of others, to overvalue the role of personality characteristics and undervalue the role of situational factors. That is, behaviors tend to be overattributed to a behaving individual’s or group’s characteristics and underattributed to situational constraints and influences. In the case of human metacognitive processes, there is both a parallel error and an error that I see as essentially the opposite. The parallel error is to overattribute the degree to which students and others learn or remember to innate ability. Differences in ability between individuals are overappreciated, whereas differences in effort, encoding activities, and whether the prior learning that is a foundation for the new learning in question has been acquired are underappreciated.
Aaron S. Benjamin (Successful Remembering and Successful Forgetting: A Festschrift in Honor of Robert A. Bjork)
constrict cutaneous muscle and splanchnic vasculature and promote salt and water retention. h e synthesis of vasodilating prostaglandins (prostacyclin and PGE 2 ) and nitric oxide in the kidneys and the intrarenal action of angiotensin II recurrent angina signals the need for angiography, if it has not already been performed. Intraaortic balloon counterpulsation is usually reserved for hemodynamically compromised patients with refractory ischemia. Temporary pacing following AMI is indicated for Mobitz type II and complete heart block, a new bifascicular block, and bradycardia with hypotension. Emergency treatment of arrhythmias constantly evolves and we recommend that the guidelines for Advanced Cardiac Life Support be followed. In general, ventricular tachycardia, if treated medically is best managed with amiodarone (150 mg intravenous bolus over 10 min). Synchronized cardioversion may be used in patients with ventricular tachycardia and with a pulse. Patients with a stable narrow-complex supraventricular tachycardia should be treated with amiodarone. Patients with paroxysmal supraventricular tachycardia, whose ejection fraction is preserved, should be treated with a calcium channel blocker, a β blocker, or DC cardioversion. Medically unstable hypotensive patients should receive cardioversion. Patients with ectopic or multifocal atrial tachycardia should not receive DC cardioversion; instead they should be treated with calcium channel blockers, a β blocker, or amiodarone. Acute Kidney Injury & Failure Acute kidney injury (AKI) is a rapid deterioration in renal function that is not immediately reversible by altering factors such as blood pressure, intravascular volume, cardiac output, or urinary l ow. h e hallmark of AKI is azotemia and frequently oliguria. Azotemia may be classii ed as prerenal, renal, and postrenal.Moreover, the diagnosis of renal azotemia is one of exclusion; thus, prerenal and postrenal causes must always be excluded.However, not all patients with acute azotemia have kidney failure.Likewise, urine output of more than 500 mL/d does not imply that renal function is normal. Basing the diagnosis of AKI on creatinine levels or an increase in blood urea nitrogen (BUN) is also problematic because creatinine clearance is not always a good measure of glomerular i ltration 12 r a t e . h e criteria developed by the Acute Kidney Injury Network are now most ot en used
Anonymous
We were doing a great job of attracting people based on what they thought our culture was, but when they got here, they found a discrepancy between what they expected and what they found.” The discrepancy could be traced back to about twenty-five long-tenured senior managers. For Meyer, that discovery was a revelation. “I’d always thought that success was about retention rates,” he said, “but it’s not. It’s about bringing the right people in and exiting the wrong people at the right time. In 2014 and 2015, a lot of these senior people left the company and were replaced by others we added with culture in the forefront of our minds.
Bo Burlingham (Small Giants: Companies That Choose to Be Great Instead of Big)
Generally, the more a team trusts its manager, the better the results will be, and the better the retention as well.
Mark Horstman (The Effective Manager)
While hiring, look for candidates who have been laid off, or who took extended paternity or maternity leave to be with their kids in their growing years. Not only will it give you an excellent hiring experience, in terms of lower joining attrition rate and shorter recruitment cycle, but it will also ensure higher retention rate. People who get laid-off are not bad people or non-performers, it is just that they didn't fit into the culture of one organization or that particular organization couldn't afford them (cost-cutting). Such people deserve to be looked differently and given another chance. People who take an extended break to take care of their infants are career oriented people with a temporary shift in their priorities, do not make it look permanent.
Sanjeev Himachali
Interestingly, I see this same problem play out in many consumer Internet startups. I often see teams that maniacally focus on their metrics around customer acquisition and retention. This usually works well for customer acquisition, but not so well for retention. Why? For many products, metrics often describe the customer acquisition goal in enough detail to provide sufficient management guidance. In contrast, the metrics for customer retention do not provide enough color to be a complete management tool. As a result, many young companies overemphasize retention metrics and do not spend enough time going deep enough on the actual user experience. This generally results in a frantic numbers chase that does not end in a great product. It’s important to supplement a great product vision with a strong discipline around the metrics, but if you substitute metrics for product vision, you will not get what you want.
Ben Horowitz (The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers)
Retention is the most critical metric in understanding a product, but most of the time, the data is not pretty. When you look at the engagement data for the entire industry, the data has told the same story over and over—users don’t stick to their apps. One study50 published on tech blog TechCrunch told the story in its headline: “Nearly 1 in 4 people abandon mobile apps after only one use.” The authors looked at data from 37,000 users to show that a large percentage of users would quit an app after just a single try. Unfortunately, I’ve found similar results. In collaboration with Ankit Jain, a former product manager at Google Play, I published an essay titled “Losing 80% of mobile users is normal,” which illustrated the rapid decay that happens right after a new user signs up to a product. Of the users who install an app, 70 percent of them aren’t active the next day, and by the first three months, 96 percent of users are no longer active. The shape of the retention curve matters a lot—ideally, the curve levels out over time, indicating that some users consistently come back. But this is not true for the average app—its curve consistently falls over time, eventually whittling itself to zero. The brutal conclusion is that the usual result for most apps is failure—but there are, of course, exceptions. This is why out of the 5+ million apps on iOS and Android, just a few hundred have large audiences, and only a few dozen dominate all of people’s time and attention. Data from analytics company comScore, revealed that people spend 80 percent with just three apps51—and I’m sure you can guess which ones.
Andrew Chen (The Cold Start Problem: How to Start and Scale Network Effects)
It's also important for tech product managers to have a broad understanding of the types of analytics that are important to your product. Many have too narrow of a view. Here is the core set for most tech products: User behavior analytics (click paths, engagement) Business analytics (active users, conversion rate, lifetime value, retention) Financial analytics (ASP, billings, time to close) Performance (load time, uptime) Operational costs (storage, hosting) Go‐to‐market costs (acquisition costs, cost of sales, programs) Sentiment (NPS, customer satisfaction, surveys)
Marty Cagan (INSPIRED: How to Create Tech Products Customers Love (Silicon Valley Product Group))
HEART metrics measure happiness, engagement, adoption, retention, and task success. These are usually used to talk about a specific product or feature.
Melissa Perri (Escaping the Build Trap: How Effective Product Management Creates Real Value)
Tavel noted that there are three distinct strategy phases startups, and by extension new products, go through: engagement, retention, and self-perpetuating. Startups that go through all three tend to turn into multibillion-dollar companies, whereas startups that get stuck in one phase commonly fail.
Product School (The Product Book: How to Become a Great Product Manager)
Startup Metrics for Pirates,” where he came up with a general approach to metrics for an entire product, called AARRR metrics—although he put it together for startups, where the success of a company depends on one product, it’s useful for any product. The acronym stands for the following: Acquisition: How the user comes to your product. Activation: The user’s first visit to your product and her first happy experience. Retention: The user liked your product enough to use it again (and hopefully again and again…). Referral: The user likes it enough to tell someone about it. Revenue: The user finds your product valuable enough that she pays for it.
Product School (The Product Book: How to Become a Great Product Manager)
Tavel noted that there are three distinct strategy phases startups, and by extension new products, go through: engagement, retention, and self-perpetuating. Startups that go through all three tend to turn into multibillion-dollar companies, whereas startups that get stuck in one phase commonly fail. The goal of the first phase is to get customers using your product and completing the core action, like posting a photo to Instagram. This is a sign they’re engaged with your product, and we could say that completing the core action is a success metric that supports an engagement goal.
Product School (The Product Book: How to Become a Great Product Manager)
And our more progressive clients, monitored by their CFOs, are starting to require a specific number of hours of ongoing education at all levels of the organization (we suggest 12 hours for the frontline; 25 hours for middle management; and 45 to 60 hours for senior leaders as a starting point). Worried about spending all that money on training only to watch your people go elsewhere? The research definitively shows that training and development increases loyalty. Besides, what’s the alternative? Do you really want your people not to be the best-trained for the jobs they have to do? And how much should you spend on training? It obviously depends, but 2% to 3% of your payroll is a good benchmark. Who should you spend it on? Senior leaders, middle managers, frontline employees? They all need training, but focus first on your middle management. In most growth companies, they have the hardest jobs and are critical to employee engagement and retention, yet get the least preparation for it.
Verne Harnish (Scaling Up: How a Few Companies Make It...and Why the Rest Don't (Rockefeller Habits 2.0))
Abdul Kunateh excels as a leader, especially when it comes to instilling confidence in employees. He also has extensive experience with recruiting and performance management. His unique approach leads to increased engagement and retention, which helps save money on recruiting and hiring. Abdul Kunateh also has extensive experience with project management.
Abdul Kunateh
CRM (Customer Relationship Management) is a marketing strategy that focuses on managing interactions and relationships with customers. CRM enables businesses to improve customer satisfaction, loyalty, and retention by providing personalized experiences that meet their needs. CRM is an essential aspect of modern marketing as it enables businesses to understand their customers' behavior, preferences, and needs and develop targeted marketing campaigns that resonate with them. In Go High Level, CRM (Customer Relationship Management) is a core component of the platform. The CRM functionality in Go High Level enables businesses to manage their customer interactions and relationships more effectively, improving customer satisfaction, loyalty, and retention. The CRM functionality in Go High Level includes a range of features and tools designed to help businesses automate and streamline their customer-facing processes, as well as provide them with insights into their customers' behavior, preferences, and needs. In essence, CRM is a set of practices, technologies, and strategies that businesses use to manage their customer interactions and relationships. The goal of CRM is to build stronger, more meaningful relationships with customers by providing them with personalized experiences and tailored solutions. CRM in marketing can be divided into three main categories: operational CRM, analytical CRM, and collaborative CRM. Operational CRM focuses on automating and streamlining customer-facing processes, such as sales, marketing, and customer service. This type of CRM is designed to improve efficiency and productivity by automating repetitive tasks and providing a centralized database of customer information. Operational CRM includes features such as sales pipeline management, lead nurturing, and customer service management. Analytical CRM focuses on analyzing customer data to gain insights into their behavior, preferences, and needs. This type of CRM enables businesses to make data-driven decisions by providing them with a better understanding of their customers' needs and preferences. Analytical CRM includes features such as customer segmentation, data mining, and predictive analytics. Collaborative CRM focuses on enabling businesses to collaborate and share customer information across different departments and functions. This type of CRM helps to break down silos within organizations and improve communication and collaboration between different teams. Collaborative CRM includes features such as customer feedback management, social media monitoring, and knowledge management. CRM is important for marketing because it enables businesses to build stronger, more meaningful relationships with customers. By understanding their customers' behavior, preferences, and needs, businesses can develop targeted marketing campaigns that resonate with them. This results in higher customer satisfaction, loyalty, and retention. CRM can also help businesses to improve their sales and marketing processes by providing them with better visibility into their sales pipeline and enabling them to track and analyze their marketing campaigns' effectiveness. This enables businesses to make data-driven decisions to improve their sales and marketing strategies, resulting in increased revenue and growth. Another benefit of CRM in marketing is that it enables businesses to personalize their marketing campaigns. Personalization is essential in modern marketing as it enables businesses to tailor their marketing messages and solutions to meet their customers' specific needs and preferences. This results in higher engagement and conversion rates, as customers are more likely to respond to marketing messages that resonate with them. Lead Generation: Go High Level provides businesses with a range of tools to generate leads, including customizable landing pages, web forms, and social media integrations.
What is CRM in Marketing?
A brilliant jerk is one who is highly competent but whose attitude doesn’t align with company culture. If you end up hiring one by mistake, don’t keep them around for too long because they represent a living and breathing violation of the company culture, and you look like a hypocrite.
Binod Shankar (Let's Get Real: 42 Tips for the Stuck Manager)
AI-powered analytics can provide predictive insights about employee turnover, helping HR to develop retention strategies proactively. Similarly, AI can support performance management by analyzing employee performance data and providing recommendations for improvement.
Donovan Tiemie (HR in the age of AI: The Illusion of Control (Revolutionizing HR: Transforming People Management in the Digital Age Book 2))
If you carefully manage leading indicators such as mission alignment, an employee’s ability to gather network intelligence, or general satisfaction during tours of duty check-ins, you’ll successfully manage lagging indicators such as employee retention or engagement.
Reid Hoffman (The Alliance: Managing Talent in the Networked Age)
Rich Lesser, the CEO of The Boston Consulting Group, calls this building an “opt-in” culture. “The reality of being an employer is not that you make people feel an obligation to stay,” Lesser told us. “You hire the best people you can possibly find. Then it’s up to you to create an environment where great people decide to stay and invest their time. Since we made this an emphasis, our employee satisfaction scores have been better than ever, and our retention of top talent is substantially higher than a decade ago.
Reid Hoffman (The Alliance: Managing Talent in the Networked Age)
There are really only a handful of core processes that make any organization function. Systemizing involves clearly identifying what those core processes are and integrating them into a fully functioning machine. You will have a human resource process, a marketing process, a sales process, an operating process, a customer-retention process, an accounting process, and so on. These must all work together in harmony, and the methods you use should be crystal clear to everyone at all levels of the organization. The first step is to agree as a leadership team on what these processes are and then to give them a name. This is your company’s Way of doing business. Once you all agree on your Way, you will simplify, apply technology to, document, and fine-tune these core processes. In doing so, you will realize tremendous efficiencies, eliminate mistakes, and make it easier for managers to manage and for you to increase your profitability.
Gino Wickman (Traction: Get a Grip on Your Business)
Every Monday morning at Nest, that’s how my management meetings started: Who are the great people we want to hire? Are we making our hiring goals or retention metrics? If not, what’s the problem? What are the roadblocks? And how is the team doing? What issues do people have? How are performance reviews going? Who needs a bonus? How are we going to celebrate these accomplishments so the team feels valued? And, most importantly, are people leaving?
Tony Fadell (Build: An Unorthodox Guide to Making Things Worth Making)
Walla is a powerfully simple studio software, designed by fitness industry and tech experts. Discover a modern studio management platform built to boost profitability, save time, increase retention, and engage more clients with the industry’s best experience.
Walla
Good performance management is fundamentally about results, fairness, retention, and transparency. It’s about making sure that the people who have the best skills get more responsibility if they want it, so they can have a bigger impact. That improves the results of individuals and teams collectively.
Kim Malone Scott (Radical Candor: How to Get What You Want by Saying What You mean (Expert Thinking))
People don’t appreciate that they can always buy growth, but you can’t buy engagement, it has to be built into the product. Unless you have a crappy product, it’s much more cost effective to spend resources on keeping existing customers than finding new
Nir Eyal
The more ambitious the OKR, the greater the risk of overlooking a vital criterion. To safeguard quality while pushing for quantitative deliverables, one solution is to pair key results, to measure both effect and counter effect, as Grove wrote in High Output Management. When key results focus on output, Grove noted, 'the paired counterparts should stress the quality of work, thus in Accounts Payable, the number of vouchers processed should be paired with the number of errors found either by auditing or by our suppliers. For another example, the number of square feet cleaned by a custodial group should be paired with by rating of the quality of work as assessed by a senior manager with an office in that building.' -- Let the quantity goal be three new features, the paired quality goal will be fewer than 5 bugs per feature in quality assurance testing. The result - developers will write cleaner code. If the quantity goal is 50 million dollars in Q1 sales, the quality goal can be 10 million dollars in maintenance contracts, because sustained retention by sales professionals will increase customer success and satisfaction.
John Doerr (Measure What Matters, Blitzscaling, Scale Up Millionaire, The Profits Principles 4 Books Collection Set)
IT is the business’s competitive differentiator to customer acquisition and retention.
Pearl Zhu (Digital It: 100 Q&as)
What are the benefits of a Consolidation Loan? Direct Consolidation Loans allow borrowers to combine one or more of their Federal education loans into a new loan that offers several advantages. One Lender and One Monthly Payment With only one lender and one monthly bill, it is easier than ever for borrowers to manage their debt. Borrowers have only one lender, the U.S. Department of Education, for all loans included in a Direct Consolidation Loan. Flexible Repayment Options Borrowers can choose from multiple plans to repay their Direct Consolidation Loan, including an Income Contingent Repayment Plan. These plans are designed to be flexible to meet the different and changing needs of borrowers. With a Direct Consolidation Loan, borrowers can switch repayment plans at anytime. No Minimum or Maximum Loan Amounts There is no minimum amount required to qualify for a Direct Consolidation Loan! Varied Deferment Options Borrowers with Direct Consolidation Loans may qualify for renewed deferment benefits. If borrowers have exhausted the deferment options on their current Federal education loans, a Direct Consolidation Loan may renew many of those deferment options. In addition, borrowers may be eligible for additional deferment options if they have an outstanding balance on a FFEL Program loan made before July 1, 1993, when they obtain their first Direct Loan. Reduced Monthly Payments A Direct Consolidation Loan may ease the strain on a borrower’s budget by lowering the borrower’s overall monthly payment. The minimum monthly payment on a Direct Consolidation Loan may be lower than the combined payments charged on a borrower’s Federal education loans. Retention of Subsidy Benefits There are two (2) possible portions to a Direct Consolidation Loan: Subsidized and Unsubsidized. Borrowers retain their subsidy benefits on loans that are consolidated into the subsidized portion of a Direct Consolidation Loan. Temporary In-School Consolidation Authority During a one (1) year period, borrowers who meet certain requirements may consolidate loans that are in an in-school status into a Direct Consolidation Loan. Direct Consolidation Loans may be made under this temporary provision to borrowers whose consolidation applications are received on or after July 1, 2010 and before July 1, 2011. Borrowers will lose the grace period on a FFEL Subsidized/Unsubsidized Stafford Loan or Direct Subsidized/Unsubsidized Loan by consolidating the loan while it is in an in-school status. Similarly, PLUS borrowers who consolidate a Federal PLUS Loan or Direct PLUS Loan that was first disbursed on or after July 1, 2008 will lose the six (6) month post-enrollment deferment period. Parent PLUS borrowers who consolidate a Federal PLUS Loan or Direct PLUS Loan that was first disbursed on or after July 1, 2008 will lose eligibility to defer repayment while the student for whom the loan was obtained is in school. Click here for information on the eligibility requirements for this temporary provision. For more Questions you can contact The Student Loan Help Center.
The Student Loan Help Center