F.L.I.G.H.T. Financial Literacy for Graduate Health Students of Today The F.L.I.G.H.T. program is designed for University of Tennessee Health Science Center students to educate them for their journey by providing financial literacy and debt management resources. F.L.I.G.H.T. purpose is to equip each student with the tools to handle unexpected events and plan for the short or long-term goals in the future....Take FLIGHT!

 The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.

 To obtain website information to establish an online account or phone numbers for specific Loan Servicers,  Many Loan Servicers offer “Live Chat” on their websites.  To Locate Information about Your Loans

Capitalizing interest means adding unpaid, accumulated interest to the principal balance of your loan. Capitalization increases the total cost of your loan. If you choose to let your interest capitalize, you repay more money in total than if you pay the interest while you are in school. Whichever option you choose, you are responsible for paying the full amount of all interest on the loan

 Income-Based Repayment (IBR) is designed to reduce monthly payments to assist with making your student loan debt manageable. If you need to make lower monthly payments, this plan may be for you. Interest rate is fixed.  The Standard Repayment plan saves you money over time because your monthly payments may be slightly higher than payments made under other plans, but you’ll pay off your loan in the shortest time. Interest rate is fixed.  The Graduate Repayment plan - your monthly payments start out low and increase every two years, for up to 10 years, interest rate is fixed. 

 Under IBR, monthly payment is capped to be affordable based on income and family size – designed for a “partial financial hardship” (PFH).  Monthly payments are adjusted each year according to changes in your income and family size – new application must be submitted.

 With the standard plan, you'll pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you'll have up to 10 years to repay your loans.  Your monthly payment under the standard plan may be higher than it would be under the other plans because your loans will be repaid in the shortest time.  For that reason, having a 10-year limit on repayment, you may pay the least interest.

 Payments start out low and increase every two years - repayment period will be up to (10)years.  As your income increase, so will your monthly payments steadily over time - no single payment under this plan will be more than three times greater than any other payment.  Your monthly payment will never be less than the amount of interest that accrues between payments

 New borrower - no outstanding balance on a Direct Loan or FFEL Program of federal loans on or after Oct 1, 2007 OR if you had no outstanding balance on a Direct Loan or FFEL Program loan when you received a new Direct Loan or FFEL Program loan on or after Oct. 1, 2007  Receive a disbursement of a Direct Loan (Unsubsidized, Subsidize or Grad Plus) for graduate or professional students on or after Oct. 1, 2011

 Capitalization, under PAYE it is limited to 10% of the balance of debt that went into repayment. So, if after the student graduate they have 200,000 of debt that goes into repayment under PAYE, no more than 20,000 will be allowed to capitalize. However, interest is still accruing, it just will not capitalize.  20- Year Loan Forgiveness: If you repay under the Pay As You Earn plan, any remaining balance will be forgiven after 20 years of qualifying repayment.  10-Year Loan Forgiveness PSLF: On-time, full monthly payments you make under Pay As You Earn (or certain other repayment plans) while employed full-time in a public service job will count toward the 120 monthly payments that are required to receive loan forgiveness through the Public Service Loan Forgiveness (PSLF) Program.

 The PSLF Program is intended to encourage individuals to enter and continue to work full- time in public service jobs. Under this program, borrowers may qualify for forgiveness of the remaining balance of their Direct Loans after they have made 120 qualifying payments (10 years) on those loans while employed full time by certain public service employers.  Complete - Employment Certification Form

 Under certain circumstances, you can receive a deferment or forbearance that allows you to temporarily postpone or reduce your federal student loan payments. Postponing or reducing your payments may help you avoid default.  During a deferment, you do not need to make payments. What’s more, depending on the type of loan you have, the federal government may pay the interest on your loan during a period of deferment.  With forbearance, you may be able to stop making payments or reduce your monthly payment for up to 12 months. Interest will continue to accrue on your subsidized and unsubsidized loans (including all PLUS loans).

 A Direct Consolidation Loan allows you to consolidate (combine) multiple federal student loans into one loan. The result is a single monthly payment instead of multiple payments.  If you consolidate your loans during your grace period, you will give up the remainder of your grace period and begin repayment after your Direct Consolidation Loan is disbursed (paid out). Your first bill will be due approximately two months after the Direct Consolidation Loan is disbursed.

◦ One Lender and One Monthly Payment One monthly payment due for student loans ◦ Flexible Repayment Options Multiple repayment plans with various term selections to repay their consolidation loan(s) ◦ Reduced Monthly Payments A consolidation loan may ease the strain on a borrower's budget by lowering the borrower's overall monthly payment.

 How Do I Apply ◦ Online Web Application - Apply online. ◦ Express Phone Application Apply over the phone if you have all Direct Loans. ◦ Paper Application  Download a paper copy of the application and promissory note - including the complete contents of the application package. ◦ OR  Request an application package be mailed to you:  Phone at AM to 8PM (EST)  at

 Equifax  Experianwww.experian.com  Transunionwww.transunion.com **Free credit report authorized by the Federal Trade Commission:

 Payment history – 35% (Accounts paid on time)  Amount owed – 30 % (# of accounts w/balances)  Length of credit history – 15% (Larger the BETTER)  New Credit – 10%  Types of credit used – 10% (Variety is BETTER)

 Financial Aid Literacy & Debt Management Website:  Facebook Page: UTHSC Financial Aid Literacy & Debt Management  Self-Enrollment Banner Course: Financial Aid Literacy & Debt Management

 Financial Aid Literacy & Debt Management Website:  Facebook Page: UTHSC Financial Aid Literacy & Debt Management  Self-Enrollment Banner Course: Financial Aid Literacy & Debt Management

Ms. Janice G. Maddox, MBA Financial Aid Literacy Coordinator Financial Aid Office (901) Janice.maddox3 - Skype

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