REPAYMENT What are my options?

Standard 10 Year Repayment Pay a fixed amount each month Pay a fixed amount each month Your monthly payments will be at least $50 Your monthly payments will be at least $50 Highest monthly payment of all the plans Highest monthly payment of all the plans However, loans will be repaid in the shortest time However, loans will be repaid in the shortest time You will pay back the least amount of interest You will pay back the least amount of interest

Extended Repayment Plan Monthly Payments are fixed Monthly Payments are fixed Pay over 25 years Pay over 25 years Monthly Payments are lower Monthly Payments are lower Pay the most interest over time Pay the most interest over time

Graduated Repayment Plan Monthly payments start out low Monthly payments start out low Increases every two years Increases every two years Loans will be paid off in 10 years Loans will be paid off in 10 years Benefit- starts you off at a lower monthly payment, but will still have the opportunity to pay off the loans in 10 years! Benefit- starts you off at a lower monthly payment, but will still have the opportunity to pay off the loans in 10 years! Also offers Graduated Extended Repayment plan Also offers Graduated Extended Repayment plan Repay loans over 30 yearsRepay loans over 30 years

Income Based Repayment (IBR)  Direct and FFEL Monthly payment is calculated based on income and family size Monthly payment is calculated based on income and family size Smallest monthly payment Smallest monthly payment Interest payment benefit- if payment does not cover the accrued monthly interest, then the government will pay your unpaid interest on Subsidized Stafford loans for up to 3 consecutive years when you first enter IBR repayment Interest payment benefit- if payment does not cover the accrued monthly interest, then the government will pay your unpaid interest on Subsidized Stafford loans for up to 3 consecutive years when you first enter IBR repayment

IBR Cont’d If you are on the IBR plan for 25 years and meet certain other requirements, then any remaining balance will be cancelled. If you are on the IBR plan for 25 years and meet certain other requirements, then any remaining balance will be cancelled.

Public Service Loan Forgiveness  10 Year public service loan forgiveness available! Must work in public service for 10 years Must work in public service for 10 years It is recommended that you start in the IBR repayment It is recommended that you start in the IBR repayment Deferments and forbearance time periods don’t countDeferments and forbearance time periods don’t count IBR repayment will allow a balance to be forgivenIBR repayment will allow a balance to be forgiven Any remaining balance after 10 yrs of service is forgiven Any remaining balance after 10 yrs of service is forgiven Only available to Direct loans Only available to Direct loans Must make 120 payments Must make 120 payments

Income-Sensitive Repayment For FFEL (Bank) loans only For FFEL (Bank) loans only Payments are based on your annual income Payments are based on your annual income As annual income increases/decreases so As annual income increases/decreases so does your monthly payment does your monthly payment Repayment period is 10 years Repayment period is 10 years Contact your servicer for more information Contact your servicer for more information

Income-Contingent Repayment  Direct Stafford and Grad PLUS loans only Monthly payments based on your (and your spouse, if married) annual income, your family size and total amount of Direct loans Monthly payments based on your (and your spouse, if married) annual income, your family size and total amount of Direct loans Repayment period is 25 years Repayment period is 25 years After 25 years in repayment, any unpaid portion may be forgiven After 25 years in repayment, any unpaid portion may be forgiven However, you will have to pay income tax on forgiven amount However, you will have to pay income tax on forgiven amount

Loan Repayment Calculations Payment Plan StandardGraduatedExtendedExtendedGraduated Loan Balance $150,000$150,000$150,000$150,000 Loan Balance at Repayment $170,870$170,870$170,870$170,870 Interest Rate 6.8%6.8%6.8%6.8% Loan Term 10 Yrs 25 Yrs 30 Yrs Monthly Payment $1,966 $1,350 (1-2) (Increases $350 every 2 Yrs) $1,186$1113 # of Payments Total Interest Paid $65,096$77,841$184,918$230,074 Total Repaid $235,966$248,711$355,788$401,024

IBR Sample Estimated AGI $50,000 Estimated Total Student Loans $170,870 Estimated Interest rate 6.8% Family Size 2 Estimated Monthly Payment $350-$400

How is interest calculated?  Interest on all Direct Loans is calculated on a simple daily basis. Formula: Formula: (Average daily balance) X (Interest rate) X (# of days between payments/365.25) = Monthly interest(Average daily balance) X (Interest rate) X (# of days between payments/365.25) = Monthly interest Example: Interest accrues between payments made on Apr. 15 and May 15.Example: Interest accrues between payments made on Apr. 15 and May 15. ($100,000) X (.068) X (30/365.25=.08214) = Monthly Interest = $ ($100,000) X (.068) X (30/365.25=.08214) = Monthly Interest = $558.55

Anesthesiology $331,000 to $423,507 Cardiology (invasive) $341,600 to $495,000 Emergency Medicine $239,000 to $316,296 OB/GYN $251,500 to $326,924 Neurology $213,100 to $301,327 Gastroenterology $327,900 to $481,923 Internal Medicine $184,200 to $231,691 Pediatrics $160,111 to $228,750 Orthopedic Surgery $397,879 to $600,000 Modern Healthcare’s Annual Physician compensation Survey © 2010

Important to Know  You can change your repayment plan at any point during your repayment period  You can pre-pay with no pre-payment penalty or fee  Keep your personal information updated with all your lenders!! (Address and telephone)  You can consolidate FFEL and Direct Loans-  Loan forgiveness programs available-  If you need help always contact your lender! They will work with you.

Important Websites Will show your entire Federal loan history and loan servicers! Will show your entire Federal loan history and loan servicers!

When in doubt……contact  SUNY Downstate Financial Aid office