1. April 2014 Loan Repayment for Graduating Students

2. The Truth about Repayment All of your loans must be repaid

3. Important Loan Contacts Post-Graduation Stafford, Plus, Perkins Handles loan repayment issues on behalf of your lender. Servicers Institutional Loans (Perkins, Etta Newby, etc.) Handles loan repayment issues on behalf of UNTHSC. Campus Partners If a loan enters default status, this agency handles collections. Guarantee Agency

4. Know What you Owe www.nslds.ed.gov “Financial Aid Review” or studentloans.gov Check loan records for accuracy Verify your personal information with each servicer Make sure your address is correct with each servicer *NSLDS does not include Alternative, PCL or LDS loans

5. Read the Fine Print Refer to your Promissory Note and Rights and Responsibilities Statement. This governs the terms and conditions of your loan.

6. Keeping Track  Loans may have been sold  May receive information from a company you don’t know  Read ALL of your mail carefully  Keep track of correspondence and billing statements  Gather repayment info on private/alternative or institutional loans

7. Exit Counseling https://www.studentloans.gov https://www.studentloans.gov  Complete before you:  Graduate  Withdraw  Enroll in less than ½ time  Includes: Subsidized Unsubsidized PLUS Loans

8. Instructions for Exit Counseling studentloans.gov “Sign in” “Complete Counseling” “Exit Counseling”

9. Exit Counseling for other Loans Institutional Loans Handled by a 3rd party servicer, Campus Partners. Perkins Loans Handled by a 3rd party servicer, Campus Partners. Complete before graduation

10. Grace Period Automatic, unless consolidated. If you do not hear from your servicer by the end of your grace period, it is YOUR responsibility to contact them about your repayment obligations. Type of LoanRepayment begins Stafford and Grad PLUS 6 months after graduation, withdraw, or enrolled less than ½ time Perkins9 months after graduation, withdraw, or enrolled less than ½ time

11. Managing Repayment Think about your long term goals Purchasing a home Getting married Further education New car By managing student loans, you can meet your responsibilities, avoid financial problems and help ensure a clean financial record.

12. Repayment Options Standard Graduated Extended Income Based

13. Standard Repayment 10 year repayment term Fixed payment amount, but payments will generally be higher than other plans Repay the least amount in interest Pay off loan sooner

14. Graduated Repayment 10 year repayment term Payments are smaller at the beginning and increase every 2 years Higher interest payments than with the standard repayment If you expect your income to increase steadily over time.

15. Extended Repayment Lengthen payments up to 25 years. Minimum loan balance of $30K to qualify Fixed or graduated payments Graduated payments increase every two years Interest costs will be higher over life of loan, although payment may be lower.

16. Income Based Plans Plans Income Based Repayment Income Sensitive Repayment Income Contingent Repayment Pay as You Earn General Plan Details Must apply annually and prove financial hardship Expect payment to change each year Each plan differs in eligibility

17. i>clicker question Which of these is NOT a repayment option? a.Standard b.Graduated c.Extended d.Pay If You Can e.Income Based

18. Payment Examples Sally graduates with $47,063 in Federal Unsubsidized Loans. Here are some examples of what her monthly payment might look like: Standard : $541.60 Graduated : $312.40 + Extended : $266.69-326.65 + Income Based Plans : varies, 10% of discretionary income* for PAYE, 15% for IBR, 20% for ICR ex: $50,000 AGI,3 in HH - $19,530 poverty level, $253-507/month *Discretionary: your income minus poverty guidelines for family size

19. i>clicker question Which statement below is true about the Income Based Repayment Plan? a.I pay more in interest over the life of the loan. b.My payments are higher than the Standard Repayment plan. c.Everyone qualifies for this plan. d.I would not qualify for PSLF.

20. Public Service Loan Forgiveness Eligible Loans: Only loans under the DIRECT LOAN PROGRAM are eligible. Loans NOT Eligible: Loans received under the FFEL Program, Perkins loans or any other student loan program are NOT eligible. Consolidation: FFEL Loans, Perkins, and other federal student loans may become eligible under consolidation. For more information: http://studentaid.ed.gov/PORTALSWebApp/students/english/PSF.jsp

21. PSLF Eligibility 1.Make 120 eligible payments 2.Make payments on eligible loans (direct loans only) 3.Payments made under eligible repayment plan. 4.Do both of those while working in eligible employment *Know that under current law, any forgiven money will be taxed as income

22. Other Loan Forgiveness Programs Research Loan Forgiveness NIH Loan Repayment Programs lrp.nih.gov National Health Service Corps nhsc.hrsa.gov State Loan Forgiveness None in Texas

23. i>clicker question True of False: If I qualify for Public Service Loan Forgiveness, I do not have to make any payments on my student loans. a.True b.False

24. Repayment Strategies: What’s your Objective? Option 1 (PSLF) Make FFEL Loans eligible by consolidating to Direct Loans Apply for Income based plan Confirm employer is eligible for PSLF with an Employment Certification Form Continue to work for a non- profit until all 120 payments are made. Don’t overpay Option 2 (Non PSLF) May consolidate Choose the plan based on your goals. 1.Pay off sooner? 2.Manage debt with life expenses? 3.Strategies may change over time.

25. Consolidation Allows you to pay only one servicer Averages all your interest rates Can only be used for federal loans Visit: loanconsolidation.ed.gov

26. i>clicker question True of False: If I consolidate my loans, I may lose my grace period. a.True b.False

27. Deferments vs Forbearance Deferment A right you have under Federal Regulation. No interest will accrue on Subsidized Stafford or Perkins Loans. Must meet certain guidelines. Forbearance  Don’t qualify for deferment but having difficulties making payments.  Interest will continue to accrue.  Each servicer makes decision on request.

28. Common Types of Deferments In-School Unemployment Economic Hardship For more information visit studentloans.gov

29. i>clicker question True or False: All medical students qualify for forbearance on their federal student loans while in residency. a.True b.False

30. Default Not making payments according to the terms of your MPN AVOID DEFAULT AT ALL COSTS!

31. i>clicker question After how many days of failing to make a payment is a loan considered to be in default? a.30 b.90 c.180 d.270 e.365

32. Consequences of Default Damages your credit Ability to receive federal student aid Denial or suspension for professional licensing Wage and tax return garnishment You can be sued

33. Loan Incentives Call your servicer about available incentives. Example: Interest rate reduction if you sign up for your monthly payments to be auto-debited from your account.

34. Useful Links  www.nslds.ed.gov (Tracks ALL federal loans you borrowed)  www.studentloans.gov (Deferment and Exit Counseling)  http://www.loanconsolidation.ed.gov/ (Consolidation)  http://studentaid.ed.gov/PORTALSWebApp/students/english/PSF.jsp (Public Service Loan Forgiveness)  http://studentaid.ed.gov/ (Loan repayment options)

35. i>clicker question Within the next 30 days, I plan to a.complete exit counseling at studentloans.gov b.decide which loan repayment plan meets my needs and/or apply for a loan repayment program c.look up my loan servicer using studentloans.gov or NSLDS d.all of the above

36. Congratulations and Good Luck! Financial Aid Office EAD 247 finaid@unthsc.edu 817-735-2505