Student Loan Exit Session

Personal reference: Friend or family member living at different addresses Parent or nearest relative: Cannot be a spouse If you have a Perkins loan please sign the original repayment schedule. Please complete personal data sheet. Last Day of actual attendance: –Separation Date June 8, 2007 All forms will be collected at the end of this session. If you do not have all the information necessary, you can the information to Please complete and sign the Personal Data Sheet

Agenda n Loan Repayment Handbook n Stafford Loans n Perkins Loan n Cancellation n NU Private Loans n Deferments / Forbearance n Consolidation n Credit n Default

Federal Stafford Loans Interest rates are variable and are subject to change every July 1 st As of July 1, 2006 Interest is fixed at 6.8% 6 month grace period Subsidized Stafford loan will accrue interest after the 6 month grace period Unsubsidized Stafford loan has accrued interest since initial disbursement Accrued interest will capitalize at the end of the 6 month grace period 10 Year term

Perkins Loans Fixed interest rate of 5% 10 Year term 9 month grace period with 0% interest Deferments are available Forbearance available up to 36 months Cancellation available in certain circumstances Northwestern is the holder of this loan

Cancellations Perkins loans are the only loans that can receive full or partial cancellations depending on employment or service Teaching in certain school districts Full time special ed teacher Full time teacher of math, science, foreign language and bilingual education Medical Technician, Health Care Provider Peace Corps, Teach for America Full time law enforcement, corrections officer. Must be in the criminal division

NU Loan Formerly known as the Parent/Student loan Recommended Optional Interest rates are variable and change every Sept. 1st Interest accrues from date of first disbursement. Unpaid interest will be capitalized at the end of the 3 month grace period. 10 Year repayment term NU Loans are eligible for forbearance only

Deferments Stafford and Perkins n Deferment: allows you to postpone payments for several reasons including: n Returning to school –deferments are unlimited n Unemployment and Economic Hardship –deferments available up to 36 months Subsidized Stafford and Perkins loans do not accrue interest during periods of deferment. Unsubsidized Stafford loans accrue interest and interest is capitalized at the end of the deferment period if it is not paid. Keep full term of loan

Forbearance Most Student Loans n 6 month intervals for a period up to 3 years. n Receiving forbearance results in higher payments once forbearance ends. n Interest will continue to accrue and will be capitalized if eligible at the end of the forbearance period if it is not paid. n Term is lost

Consolidation Consolidation allows you to: Combine all your eligible federal education loans into a new loan with a single payment Lengthen the payback period up to 30 years and reduce your monthly payment Stafford and Perkins loans are eligible for consolidation. Do not consolidate your Perkins loan if you qualify for full or partial cancellation

When can borrowers consolidate? Anytime during the post-school, six month grace period Anytime during repayment During a period of deferment or forbearance

Advantages and Disadvantages of Loan Consolidation Advantages –Possible lower interest rate –May choose to lower the monthly payment by extending the term (up to 30 years depending on size of loan) –Single Payment to one lender Disadvantages –In many cases a loss of borrower benefits or incentives earned on the Stafford Loans –Loss of some deferment benefits –In some cases a loss of the grace period –In some cases if the term is extended you will pay more interest

Repayment Schedules Standard Repayment –Ten year maximum –Fixed Schedule of monthly payments –Minimum $50 monthly payment Graduated Repayment –Monthly schedule starts with small payments that increase gradually over time –You will pay a higher total interest Extended Repayment Income-Sensitive Repayment

My Responsibilities KEEP IN TOUCH WITH YOUR LENDERS/ SERVICER Notify lender of change in demographic information or if unable to make payments for ANY reason Make payments even if you have not completed the program Make payments even if you are unable to obtain employment upon completion Make payments even if a billing statement is not received

Your Credit n All of your federal loans are reported to at least one credit bureau. n Factors reported –Timeliness of your payment –Non payment –Outstanding balance n Credit Score

Default Consequences n Your academic records will be placed on hold. n May be liable for all collection costs. n You may be subject to Administrative Wage Garnishment. n You may be sued with court costs and legal fees added to your balance. n Your income tax refund may be withheld. n Your credit rating and ability to borrow will be seriously damaged. n You may lose future eligibility for financial aid and student loans. n Your professional license could be denied or revoked. n You may be denied certain jobs.

To Obtain Additional Information of Your Loans Access information about Federal Loans, outstanding balances, disbursements, loan status, and holder by checking with the National Student Loan Data System (NSLDS) or FSA Ombudsman

Payment Estimate and Other Calculators

Student Loan Office For students with Perkins and NU Loans You can check your account status or pay online at Student Loan Office 555 Clark Street, 3 rd Floor Evanston, IL

Questions ?

Good luck in all your future endeavors!

International NU loan Intl. NU loans two types, A & B -A - Has an American citizen or permanent resident as a co-maker -B - Has an International co-maker Variable interest rates - change as of September 1st. of any year

International NU loan Interest Accrues as of first disbursement Unpaid interest will be capitalized at end of 3 month grace period ( 09/08/2007) 10 year re-payment term Forbearance Re-payment –Campus Partners (Passport Visa #) after 11/07 –Wire Transfers