1 Choosing to Understand: Student Loans

2 How are you paying for college?

3 Student Loan Debt Nationwide Source: Source:  Average student loan debt nationwide for undergraduates is $18,900.  Average student loan debt nationwide for graduates is $45,900 (includes undergraduate debt).

4 Repayment Options  Standard Repayment  Graduated Payments  Income Sensitive  Extended Repayment  Loan Consolidation Source: Source: U.S. Department of Education (wwww.ed.gov)

5 Loans at UGA Source: Source: OSFA, RFFB89 per Bob Walser

6 Undergraduate Student Financial Aid at UGA Source: Source: Job &ffa54 Common Data Set, OSFA

7 Interest on My Student Loan A “subsidized” student loan: the federal government will pay the interest on your loan while you are in school. An “unsubsidized” loan: you are responsible for paying interest that begins accruing when you receive the loan. Source: Source: U.S. Department of Education (wwww.ed.gov)

8 Estimated Repayment for Federal Direct Subsidized Loan **Minimum monthly payment Total Borrowed # of Payments Monthly Repayment Interest Charges Total Repaid $2,62562**$50$427.50$3, $4,000103**$50$1,121.05$5, $7,500120$83.27$2,491.64$9, $10,000120$111.02$3,322.48$13, $15,000120$166.53$4,983.72$19, $23,000120$255.35$7,641.53$30, $46,000120$510.69$15,283.51$61, Source: Source: Dear Student Letter, OSFA,

9 Undergraduate Repayment Source: Source: Dear Student Letter, OSFA,

10 Graduate Repayment Source: Source: Dear Student Letter, OSFA,

11 Salary Requirements Minimum Gross Annual Income Needed to Meet 10% Rule* Loan DebtIncome Needed Less than $5,000$6,661 $5,000 to $9,999$13,321 $10,000 to $24,000$33,304 $25,000 +$67,704 Source: Source: Dear Student Letter, OSFA,

12 Median Incomes for UGA BA Degree All Degrees$31,200 Agriculture Environmental Science$32,000 Arts & Sciences$30,000 Business$35,000 Education$32,000 Environmental Design$32,000 Family & Consumer Sciences$27,000 Journalism & Mass Communication$28,000 Pharmacy$81,000 Social Work$26,000 Source: Post Graduation Survey Results

13 Median Incomes Nationally for BA Degree Source: Source: National Association of Colleges and Employers Salary Survey Summer pg. 4 & 5 By Curriculum for All Types of Employers Average Offer July 2003 Agricultural Business Management$33,492 Business Administration/Management$37,122 Communications$30,075 Computer Science$47,419 Elementary Teacher Education$28,040 Engineering Technology$44,768 Health & Related Sciences$32,803 Clothing/Apparel/Textile Studies$32,915 History$32,108 Social Work$26,715 Mathematics$41,723

14 Default Rates for Georgia Schools Medical College of Georgia 0.2% Emory University 1.3% Georgia Institute of Technology 1.5% Berry College 2.6% Morehouse School of Medicine 2.9% University of Georgia 2.9% Kennesaw State University 3.6% Atlanta School of Massage 3.8% National 5.6% Ultrasound Diagnostic School 6.3% Georgia 6.4% Empire Beauty School12.1% Source: Georgia Student Finance Commission (

15 Delinquent Vs. Default Delinquent: failure to repay your loan on time in accordance with the terms of your promissory note. Delinquency begins on the day following your loan payment due date. Default: failure to repay as agreed and the failure has continued for 270 days.

16 If You Don’t Repay Your Loan on Time... You could have your. automobile impounded. You could lose a professional license issued by the state. You could forfeit a state or federal income tax refund. Your credit record could be damaged. Your pay could be garnished. You could be sued. Your employer could find out.

17 The Main Points  Student loan debt adds up quickly  Have realistic expectations of your starting salary so you can estimate how much student loan debt you can afford  Not paying back student loans can have major consequences  Student Loans are NOT free money  Only ask for what you NEED

18 For Individual Help Contact: Consumer Credit Counseling Service CCCS

19 Web site Phone #

20 Special Thanks to...