STUDENT LOAN DEBT & POST GRADUATION

WHEN WILL PAYMENTS START COMING DUE? Student are expected to start making payments 6 months after graduation. Tips for making payments on time: Schedule out when first payment is due Find out what the payment amount will be Start putting money away for payments before payment becomes due Incorporate student loan payments into monthly budget

HOW MUCH MONEY DO YOU OWE? Know who is providing your student loans -Creditkarma provides total loan amounts owedCreditkarma Realize more will be paid than amount owed because of interest It is possible for student loan debt to be forgiven Make sure the correct amount is being reported

WHAT ARE YOUR PAYMENT OPTIONS? Repayment PlanEligible Loans Monthly Payment and Time FrameQuick Comparison Standard Repayment Plan Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans Payments are a fixed amount of at least $50 per month. Up to 10 years You'll pay less interest for your loan over time under this plan than you would under other plans. Graduated Repayment Plan Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans Payments are lower at first and then increase, usually every two years. Up to 10 years You'll pay more for your loan over time than under the 10-year standard plan. Extended Repayment Plan Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans Payments may be fixed or graduated. Up to 25 years Your monthly payments would be lower than the 10-year standard plan. If you are a Direct Loan borrower, you must have more than $30,000 in outstanding Direct Loans. FFEL borrower, you must have more than $30,000 in outstanding FFEL Program loans. For example, if you have $35,000 in outstanding FFEL Program loans, and $10,000 in Direct Loans, you can use the extended repayment plan for your FFEL Program loans, but not for your Direct Loans. For both programs, you must also be a "new borrower" as of Oct. 7, You'll pay more for your loan over time than under the 10-year standard plan. Income-Based Repayment Plan (IBR) Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans made to students ConsolidationLoans (Direct or FFEL) that do not include Direct or FFEL PLUS loans made to parents Your maximum monthly payments will be 15 percent of discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply). Your payments change as your income changes. Up to 25 years You must have a partial financial hardship. Your monthly payments will be lower than payments under the 10-year standard plan. You'll pay more for your loan over time than you would under the 10-year standard plan. If you have not repaid your loan in full after making the equivalent of 25 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven. You may have to pay income tax on any amount that is forgiven. Pay As You Earn Repayment Plan Direct Subsidized and Unsubsidized Loans Direct PLUS loans made to students Direct Consolidation Loans that do not include (Direct or FFEL) PLUS loans made to parents Your maximum monthly payments will be 10 percent of discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply). Your payments change as your income changes. Up to 20 years You must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, You must have a partial financial hardship. Your monthly payments will be lower than payments under the 10-year standard plan. You'll pay more for your loan over time than you would under the 10-year standard plan. If you have not repaid your loan in full after you made the equivalent of 20 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven. You may have to pay income tax on any amount that is forgiven. Income-Contingent Repayment Plan Direct Subsidized and Unsubsidized Loans Direct PLUS Loans made to students Direct Consolidation Loans Payments are calculated each year and are based on your adjusted gross income, family size, and the total amount of your Direct Loans. Your payments change as your income changes. Up to 25 years You'll pay more for your loan over time than under the 10-year standard plan. If you do not repay your loan after making the equivalent of 25 years of qualifying monthly payments, the unpaid portion will be forgiven. You may have to pay income tax on the amount that is forgiven. Income-Sensitive Repayment Plan Subsidized and Unsubsidized Federal Stafford Loans FFEL PLUS Loans FFEL Consolidation Loans Your monthly payment is based on annual income. Your payments change as your income changes. Up to 10 years You'll pay more for your loan over time than you would under the 10-year standard plan. Each lender's formula for determining the monthly payment amount under this plan can vary.

HOW MUCH WILL YOU PAY IN INTEREST? Do you currently have federal or private student loans? -Federal loans can be forgiven Are your loans subsidized or unsubsidized? -Subsidized loans interest is paid by the government while in school -Unsubsidized loans will cost a lot more in interest What is the interest rate on your loan? -Fixed or variable rate -If variable, What will make the rate increase or decrease What effect does paying off your loans early have on your total interest paid? - Student loan interest calculatorStudent loan interest calculator

HOW TO HAVE STUDENT DEBT BE FORGIVEN? Borrowers who seek to have their student loan forgiven must have made 25 years worth of qualified monthly payments, unless they qualify for public service loan forgiveness which is 120 months. The only exception now are those borrowers using Pay As You Go; they may qualify for loan forgiveness after 20 years.student loan forgivenqualify for public service loan forgiveness Under both options, the remaining amount will be discharged, although the amount may still be considered taxable income for that year. Under Rubio/Warner, outstanding loan amounts less than $57,000 would be forgiven after only 20 years of qualified payments. Outstanding loan amounts exceeding that would be forgiven after 30 years of payments. The Teacher Loan Forgiveness program is probably the most beneficial of all the loan forgiveness plans available as teachers not only qualify for early forgiveness, but principal reduction as well. Teachers can be eligible for $5,000 to $17,500 in principal reduction on their loans under certain circumstances in the Teacher Loan Forgiveness program. The idea behind this principal reduction was to encourage young graduates to enter into a career of teaching, and also to continue that career. Teachers also qualify for complete loan forgiveness after 10 years of repaying their loans. For more information go to the Teacher Loan Forgiveness page.Teacher Loan ForgivenessTeacher Loan Forgiveness Call and find out if you qualify! (561)

Total and Permanent Disability Discharge is available to federal student loan borrowers who are disabled an unable to engage in any substantial gainful activity(employment) because of a physical or mental impairment. The discharge would provide you with relief on your student loans by removing the debt completely that is under your name. You must be able to prove to the Department of Education(DoE) that you are in fact permanently disabled. You have a few options to prove that you are permanent disabled and eligible to have your federal student loans discharged 1.If you have received a notice of award for SSDI or SSA you can submit this to the DoE to review. The notice must state that you are permanently disabled, as well as having your next review between 5-7 years. If your next review is less than 5 years, you will not qualify for disability discharge. 2.Your physician can submit a certified form stating that you are totally and permanently disabled. The physician would need to state what is your disability, how long its expected to last, and whether he or she believes you are unable to engage in gainful activity due to your disability. 3.If you are a veteran, the Veterans Affairs office can provide documentation to you that you are unemployable due to a service related injury. Your disability must have lasted, or is expected to last at least 60 months, or is expected to result in death. HOW TO HAVE STUDENT DEBT BE FORGIVEN? Call and find out if you qualify! (561)