Student Loans 101 …….. how do you keep on top of all the changes?

Objectives Types of student loans Repayment plans Where to find federal loan history and who to contact Loans for graduate school or professional programs Creighton University Financial Aid Office

Federal Student Loans ch, ch, change……… Federally Insured Student Loan (FISL) Guaranteed Student Loan (GSL) Federal Family Education Loan (FFEL) Stafford - subsidized - unsubsidized PLUS - Parent - Grad Student Federal Direct Loan (FDL) Health Care and Education Reconciliation Act of 2007

Changes to loan programs Direct Loan Program (DL)  Loans disbursed after 7/1/2010  U.S. Dept. of Ed. contracted servicers:  Nelnet, Great Lakes, Sallie Mae/Navient, PHEAA/FedLoan Servicing Family Education Loan Program (Stafford/FELP)  Loans disbursed prior to 7/1/2010 (75% of schools were in FELP)  Serviced by banks or U.S. Dept. of Ed. contracted loan servicers Creighton University Financial Aid Office

Common loan types Subsidized Stafford Unsubsidized Stafford Parent PLUS or Grad PLUS Perkins Federal Nursing Health Profession Student Loan Institutional Private/alternative Direct Consolidation Loan (federal) Private Consolidation Loan Creighton University Financial Aid Office

Notification of student loan eligibility Student submits Free Application for Federal Student Aid (FAFSA) Student submits verification documentation Financial Aid Office awards student (cost of attendance minus expected family contribution (EFC) equals Need) Active acceptance of aid Student completes Master Promissory Note Student completes Entrance Counseling Student completes Exit Counseling Creighton University Financial Aid Office

Subsidized Loan (Undergraduate) Fixed interest rate on July % for 7/1/14 – 6/30/15 Interest paid by government while in school 6-month grace period Annual limits ▫$3500 freshman ▫$4500 sophomore ▫$5500 junior/senior Creighton University Financial Aid Office

Unsubsidized Loan (Undergraduate) Fixed interest rate on July % for 7/1/14 – 6/30/15 Interest accrues while in school 6 month grace period Annual limit for dependent student = $2000 If ineligible for part or all of subsidized loan, eligibility for annual unsubsidized loan increased by that amount Independent student or dependent student with parent PLUS loan denial  $6000 Freshman/Sophomore  $7000 Junior/Senior Creighton University Financial Aid Office

Aggregate Stafford or Direct Loan limits for undergraduate students Dependent student ▫$31,000 ($23,000 subsidized) Independent student ▫$57,500 ($23,000 subsidized) Creighton University Financial Aid Office

Common repayment plans for subsidized/unsubsidized loan 10 year fixed payment 25 year fixed payment if borrowed over $30,000 Income driven repayment plans  Income contingent (ICL)  Income based repayment (IBR)  Pay as you earn (PAYE) Consolidation Creighton University Financial Aid Office

Perkins, Nursing, or HPSL 5% fixed interest rate Interest deferred while in school 9 month grace period 10 year repayment plan Creighton University Financial Aid Office

Private or Alternative Loans Variable or fixed interest rate based on credit worthiness Co-signer requirement Governed by consumer banking laws Interest accrues while in school Length of repayment period varies by lender Cannot be consolidated with federal student loans Creighton University Financial Aid Office

Unsubsidized Loan only Fixed rate on July % for 7/1/14 – 6/30/15 ▫Annual limit  $20,500 for Grad/Law/OT/PT  $33,000 - $44,000 for Pharmacy/Dental/Medical ▫Aggregate limit  $138,500 for Grad/Law/OT/PT  $224,000 for Pharmacy/Dental/Medical GradPlus Loan 7.21% for 7/1/14 – 6/30/15  Credit check – no adverse history  Can borrow up to cost of attendance minus other financial aid  No aggregate limit Creighton University Financial Aid Office Graduate or professional program loan limits

Forgiveness/cancellation Public service loan forgiveness (PSLF) after 10 years  Created in 2007  Full-time employment  Public or tax exempt (designated 501(c)(3) status by IRS)  Direct Loans only Income based repayment (IBR) after 25 years Pay As You Earn (PAYE) after 20 years Teacher  School must be designated by state as low income  Perkins loan cancellation over 5 years - Special Education  Sub/Unsub cancellation of $5,000 after 5 years  Sub/Unsub cancellation of $17,500 for highly qualified teachers in math or scicence after 5 years Certain health professions  Perkins Loan for Nursing, PT, OT over 5 years Disability/death Creighton University Financial Aid Office

Deferment or forbearance Deferment  Entitlement  Accepted in a degree program at least ½ time  Economic hardship deferment  Government pays interest on subsidized loan Forbearance  Discretionary  Postpones or reduces payment for a short time  Interest accrues on subsidized loan Creighton University Financial Aid Office

Consequences of default 270 days Incur additional costs Lose eligibility for future financial aid Lose federal and state tax refund Wages may be garnished Credit report damaged for 10 years Creighton University Financial Aid Office

Track borrowing at the National Student Loan Data System

Loan history Click on loan number for loan servicer contact information

Student Loan Debt and Default Rates (undergraduate) National $29,400 Nebraska $26,473 (Project on Student Loan Debt 2012) Creighton University$25,129 National 13.9% Nebraska 7.0% Creighton University 2.0%

Helpful websites  Repay Your Loans  Consolidation information and application  Repayment Estimator Tool  Estimate monthly payments Creighton University Financial Aid Office

Contact information Dean Obenauer Assistant Director of Financial Aid Creighton University 2500 California Plaza Omaha, NE