1. Financial Aid Exit Counseling 2015 – 2016 PRESENTED BY BRADLEY HENDRIX FINANCIAL AID OFFICE, DEFAULT PREVENTION COORDINATOR

2. Agenda Preparing for Repayment Rights & Responsibilities Total Average Indebtedness Exit Counseling and Repayment Plans Public Service Loan Forgiveness Program (PSLF) Loan Consolidation and Cancellation Internship/Residency Forbearance Options? Delinquency and Default Keys to Successful Repayment 2

3. 3 Preparing For Repayment √Complete the Mandatory Exit CounselingExit Counseling Online √Print a copy of your *NSLDS report www.nslds.ed.gov √Create an account with your loan servicersList of Loan Servicers √Create an account with SALTwww.saltmoney.org √Estimate and Review Repayment OptionsRepayment Calculator *NSLDS report does not include the following reports: Title VII loans (Primary Care, LDS, HPSL, and Nursing) – These are serviced by ECSI Private Alternative Education Loans

4. Preparing For Repayment PLEASE NOTE: If you do not choose a payment plan during grace period, you will be placed in the standard plan. Can change your payment plan Can change your due date Can postpone payment with a deferment/forbearance Will pay more in interest with longer repayment periods 4 Preparing For Repayment

5. Your Rights & Responsibilities

6. Your Rights Receive a copy of your signed MPN Receive a disclosure statement Receive a six-month grace period Prepay all or part of your loan without penalty Deferments & forbearance, if eligible Written notice if your loan is transferred Proof of discharge after repaying loan in full 6 Your Rights

7. Your Responsibilities Repay your loan(s) Make on-time monthly payments Read correspondence from loan servicer Notify loan servicer of changes within 10 days School and enrollment status Name, address, and telephone number Ask your loan servicer for help 7 Your Responsibilities

8. Exit Counseling Requirement Log onto www.studentloans.gov 8 Exit Counseling

9. 2015 Total Average Indebtedness

10. 10 DISCIPLINE 2015 TOTAL AVERAGE INDEBTEDNESS DOCTOR OF DENTAL MEDICINE$317,642 DOCTOR OF OPTOMETRY$191,404 DOCTOR OF OSTEOPATHIC MEDICINE POMONA/LEBANON$235,004/$254,254 DOCTOR OF PHARMACY$232,611 DOCTOR OF PHYSICAL THERAPY - ENTRY$162,175 DOCTOR OF PODIATRIC MEDICINE$229,706 DOCTOR OF VETERINARY MEDICINE$243,801 MASTER OF SCIENCE IN HEALTH SCIENCES$56,382 MASTER OF SCIENCE IN MEDICAL SCIENCES$43,213 MASTER OF SCIENCE IN PHARMACEUTICAL SCIENCES$18,080 MASTER OF SCIENCE IN PHYSICIAN ASSISTANT STUDIES$110,116 MID-CAREER POST-BACCALAUREATE DOCTOR OF PHARMACY$170,445

11. 11 DISCIPLINE 2015 TOTAL AVERAGE INDEBTEDNESS ADN TO MS IN NURSING - AMBULATORY CARE$58,935 ADN TO MS IN NURSING - FAMILY NURSE PRACTITIONER$100,416 ADN TO MS IN NURSING - LEADERSHIP AND MANAGEMENT$46,586 DOCTOR OF NURSING PRACTICE$53,670 FAMILY NURSE PRACTITIONER$40,986 MSN - CLINICAL NURSE LEADER$143,038 MSN - FAMILY NURSE PRACTITIONER$71,649 MSNE - AMBULATORY CARE$135,564 MSNE - CLINICAL NURSE LEADER$143,038 MSNE - FAMILY NURSE PRACTITIONER$104,730 MSNE - LEADERSHIP AND MANAGEMENT$142,420 MSN/FNP - DNP DUAL DEGREE PROGRAM - TRADITIONAL$135,367

12. Repayment Plans

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14. 14 Income - Driven Repayment Plans What is an income-driven repayment plan? An income-driven repayment plan is a repayment plan that sets your monthly student loan payment at an amount that is intended to be affordable based on your income and family size. The U.S. Department of Education offers four income- driven repayment plans: Revised Pay As You Earn Repayment Plan (REPAYE Plan), Pay As You Earn Repayment Plan (PAYE Plan), Income-Based Repayment Plan (IBR Plan), and Income-Contingent Repayment Plan (ICR Plan). Most federal student loans are eligible for at least one income-driven repayment plan. Reference: Income Driven Repayment Plans - Federal Student AidIncome Driven Repayment Plans - Federal Student Aid

15. 15

16. 1. Student ◦Single w/ no dependents ◦Salary = $80,000 annually ◦WesternU Average Loan Debt = $200,000 16 Example Repayment TypeEstimated Monthly PaymentTotal Months Standard$2,343120 Graduated $1,357 - $4,072 120 Extended Fixed $1,439300 Extended Graduated $1,200-@2,008300 Income-Based Repayment (IBR) $781 - $2,343300 IBR for New Borrowers $521 - $1,463240 Pay As You Earn $521 - $1,463240 Income-Contingent (ICR) $1,139 - $2,774213

17. Public Service Loan Forgiveness

18. 18 Public Service Loan Forgiveness

19. Loan Consolidation & Cancellation

20. Loan Consolidation One or more federal student loans combined into one new loan. Fixed interest rate based on the weighted average of the interest rates rounded up to the nearest 1/8 percent (capped at 8.25 percent). Repayment term can be extended to up to 30 years based on total education debt. Repayment schedule is the standard plan but can be changed to extended or graduated plan. As of July 1, 2010, the U.S. Department of Education (ED) is the only lender of a Consolidation loan. 20 Loan Consolidation & Cancellation

21. Loan Consolidation 21

22. Loans Eligible for Consolidation Federal Family Education Loan Program (FFELP) –Subsidized and Unsubsidized Stafford loans –PLUS loans William D. Ford Direct Loans Program (DL) –Subsidized and Unsubsidized Direct Stafford loans –Direct PLUS loans Other federal student loans –Perkins loans –Health Professions Student Loans (HPSL) –Loans for Disadvantaged Students (LDS) –Nursing Student Loans (NSL) 22 Loans Eligible for Consolidation

23. Loan Cancellation In extreme circumstances: Total and permanent disability Death Federal Loans are not dischargeable in bankruptcy 23 Loan Cancellation

24. Internship / Residency Forbearance Options?

25. Forbearance Temporary reduction or postponement of payments Not automatic You must apply and receive approval from servicer Primary reasons Poor health Internship/ Residency Financial hardship Interest will continue to accrue Contact your loan servicer for the best options available 25 Forbearance

26. Delinquency & Default

27. Avoid Delinquency & Default Pay on time A payment received one day late is considered delinquent. Delinquent payments are reported to the credit bureaus. Always call your school or servicer for help. Open a FREE account with SALT - www.saltmoney.org www.saltmoney.org Open a FREE account with your Loan Servicer ◦Loan ServicersLoan Servicers IMPORTANT NOTE: Beware of companies advertising consolidation debt relief who are not affiliated with the Department of Education. 27 Avoid Delinquency & Default

28. Consequences of Default Full amount of loan is due ◦Including collection costs, accelerated interest, court costs, and attorney’s fees. Subject to federal and state offsets ◦Wages and tax refund may be garnished Credit will be tarnished Loss of deferment and forbearance options Loss of eligibility for future financial aid May lose eligibility for certain federal or state jobs May lose professional license 28 Consequences of Default

29. Keys to Successful Repayment

30. Keep school and servicer informed about changes Keep copies of all documents in one place Open all mail The longer it takes to repay your loans, the more interest you will pay Build good credit with timely payments Always ask for help Note: Interest Payments are tax deductible up to $2,500 for each tax filing year. 30 Keys to Successful Repayment

31. 31 Resources Financing A Healthy Future Financing a Healthy Future Federal Student Aid www.studentaid.ed.gov Federal Student Aid Repayment Calculator Mandatory Exit Counseling, Loan Consolidation, and application for Income Driven Plans StudentLoans.Gov WesternU's Loan Forgiveness and Repayment Database Loan Forgiveness and Repayment Search ECSI Financial Aid Staff and Contact Information ECSI FAO Contact Information

32. 32 Federal Loan Servicers

33. QUESTIONS