1. Financial Aid PLP Financial Aid Office
Student Loan Bakery
Financial Aid PLP
Financial Aid Office

2. KNOW YOUR LOANS My Financial Aid Portal Access
Federal Loans v. Private Loans
Federal Loan Servicers
Federal Loan Terms and Conditions
Repayment Options
Standard, Graduated, Extended, ICR, IBR
Public Service Loan Forgiveness
Loan Consolidation
Payments

3. Student Financial Aid Portal
Access through “Student Records Login” Or
Value: Real-time information on budgets, current aid awards, online acceptance of financial aid awards, date of aid disbursements

4. Federal v. Private Loans
Federal Loans
Originated and Serviced by Federal Government
Loans before 2010 may be serviced under FFEL Program and not the Direct Loan Program
***important for repayment and consolidation***
Fixed Interest Rates, for loans after 2006
Private Loans
Guaranteed by Private Banks or Credit Unions
Loan Terms and Conditions: Determined by Lender, all different!
Cannot be included in loan forgiveness, special repayment programs, or discharged after death or permanent disability

5. Loan Servicers: Federal Loans
Direct Loans William D. Ford Direct Loan Program (ACS)
Phone number:
Website:
Fed Loan Servicing (PHEA)
Phone number:
Website:
Great Lakes
Phone number:
Website:
NelNet Education Planning and Financing
Website:
SallieMae Department of Education Loan Services
Phone number:
Website:
*** To Retrieve Information on Your Loan Servicer: ***

6. Federal Direct Loan Terms and Conditions
Annual Maximum: $20,500
Lifetime Maximum: $138,500
Includes Undergraduate Studies
Effective July 2, 2012: Graduate students are not eligible for new subsidized loans
Subsidized Loans: Interest paid by Federal Govt. while student is enrolled at least half-time
Unsubsidized Loans: Interest accrues on loan while student is enrolled at least half-time
Interest Rate: Fixed 6.8%
Loan Origination Fee: 1%
Loan Request: $1000, Funds Received for $990
Grace Period: 6 months
begins once the student graduates, withdraws, or drops below half-time enrollment

7. Direct Grad PLUS Loans Terms and Conditions
Annual Maximum: Cost of Attendance minus all other aid
Other Aid: Scholarships, Perkins loans, Federal Direct Loans, and Work-Study
Lifetime Maximum: None- subject to credit approval
If denied: request credit report from
Required: to fix credit problem and appeal credit decision or co-signer
Interest Rate: Fixed 7.9%
Loan Origination Fees: 4%
Loan Request : $1000, Funds Received by Student: $960
No interest subsidy, interest accrues immediately
Grace Period: None, but student requests a loan deferment
Loan deferment: ends after student graduates, withdraws, or drops below half-time enrollment
Student may request an additional 6 month deferment if disbursed on or after July 1st, 2008

8. Repayment Plan Options
Standard Repayment (sliced bread)
Graduated Repayment: (sloped sliced bread)
Extended Repayment: (baguette)
Fixed or Graduated
Income Contingent Repayment (ICR) (unsliced artisan bread)
Income-Based Repayment (IBR) (unsliced bread)

9. Standard Repayment Plan
Payment Amount: fixed, set by loan balance
Minimum Payment: $50
Repayment Term: 10 years (plus deferments and forbearances)
The good:
10 years of loan payments
Least amount in interest paid
Ideal: high income v. loan balance
The bad:
Highest payment amount

10. Graduated Repayment Plan
Payment Amount: set by loan balance, increases with time
Minimum Payment: Interest accrued between payments
Maximum Payment: >3x the minimum payment
Repayment Term: 10 years (plus deferments and forbearances)
The good:
10 years of loan payments
Less interest than other alternative
repayment options
Ideal:
high income v. loan balance
income increases with time
The bad:
Higher interest costs than standard

11. Extended Repayment Plan
Required: >$30,000 in Direct Loan debt
Repayment Term: up to 25 years (plus deferments and forbearances)
Two payment options:
Fixed
Similar to standard payment
Pay same amount each month
Graduated
Similar to graduated repayment plan
Payments start lower and increase every 2 years
The good:
More affordable payments with longer term
Ideal:
medium income v. loan balance
income increases with time
The bad:
Higher interest costs (longer the term, the more interest)

12. Income Contingent Repayment Plan (ICR)
Not available for:
Parent Plus loans
Consolidation loans used to repay Parent Plus loans
Why to bring up: if you take loans out for your children
Minimum Payment: calculated annually, based on AGI, family size, and loan balance
Lesser of:
20% of monthly discretionary income (based on AGI, family size, state’s income poverty level) OR
Value of: payments based on a 12 year repayment term multiplied by income percentage factor determined by annual income
If payments < accrued interest each month, the unpaid interest is capitalized once a year
Capitalization will not exceed 10% of original loan amount
Interest will continue to accrue, limit on compounding
Repayment Term: up to 25 years (plus deferments and forbearances)
Discharge: any unpaid balance after 25 years

13. Income-Contingent Repayment Plan (ICR)
The good:
Limits loan payments to manageable payment amounts
Discharge: 25 years of payments OR 10 years for Public Service
Interest capitalization cap
Increases flexibility to move to different repayment program
Ideal:
low income v. loan balance
The bad:
Higher costs if no discharge
Discharged loan balance may be taxable
Spousal income is included in calculations
***You will need to consolidate loans to DL if you have FFEL loans***

14. Income-Based Repayment Plan (IBR)
Available for: all Stafford, Graduate PLUS, Consolidation loans (DL or FFEL)
Not available for: defaulted loans, Parent Plus loans, or consolidated Parent Plus loans
Minimum Payment:
calculated annually, documentation submitted annually
Set at 15% of discretionary income (AGI & family size)
Requires “partial financial hardship”
IBR payment > standard repayment
While payments are capped at the 10-year standard repayment, payments are made for 25 years
If payments do not cover accrued interest, the federal government will pay interest on subsidized loans up to 3 years
Borrower is responsible for ALL accrued interest on unsubsidized loans
ALL interest will be capitalized if IBR is left or there is no partial financial hardship
Repayment Term: up to 25 years (plus deferments and forbearances)
Discharge: any unpaid balance after 25 years or 10 years for public service

15. Income-Based Repayment Plan (IBR)
The good:
Likely to be lowest payment
Ability to discharge loans after 25 years of payments
10-year public service loan forgiveness program
Ideal:
low income v. loan balance and public service work
Spouse student loans can be included in calculation
The bad:
Possibility of increased interest payments
No capitalization cap on interest
Documentation is submitted annually to servicer
Discharged value may be taxable
Spousal income is used in calculation

16. Public Service Loan Forgiveness Program
What: Discharge of Direct Loans
DL Loans including Grad Plus loans
Perkins loans, must be consolidated with DL
Rehabilitated defaulted loans
No FFEL loans: consolidate FFEL loans with DL
When: After 120 qualifying monthly payments
Qualifying payments need not be consecutive
Qualifying payments: made while employed FT by a public service organization
Qualifying employment need not be consecutive
Excluded: time spent in deferment or forbearance
Included: when calculated payment is zero
Pair with: IBR; ICR; Standard Repayment Plan; any other Direct Loan repayment plan
Waived balance is not currently taxable

17. Public Service Loan Forgiveness Program
Required: FT public service job with PSLF eligible employer
PSLF eligible employers:
Public sector employers
Federal, state, local, or tribal agency or entity
Private non-profit employers that is 501(c)(3)
Except: partisan political organizations, labor unions,
Except: organizations engaged in religious activities
If your job duties are related to religious instruction, worship services, or any form of proselytizing
So: individuals working at religiously-affiliated non-profit organizations who perform at least 30 hours of non-religious activities are eligible for PSLF
Private employer: if it is non-profit, is not an excluded group, and provides one or more public services
Examples: military, law enforcement, public interest, early childhood, public health, education

18. Consolidation www.loanconsolidation.ed.gov
Use: Centralize loans to 1 payment when there is multiple servicers or loan programs (DL and FFEL)
Loans: Stafford loans, Plus loans, Perkins Loans, SLS loans, old consolidation loans
PLUS loans: Graduate or Parent, if borrower is parent
Downside: loss of borrower benefits
Perkins loans: loss of interest subsidy in deferments, loss of cancellation benefits, decreased grace period
Principle rebates, interest rate discounts

19. Monthly Payment Plan Example
Calculator Inputs: Calculator Outputs:
Interest Rate:
6.8%
Loan Amount:
$165,000
Adjusted Gross Income (AGI):
$75,000
Marital Status:
Single
Family size: 1
State of Residence:
Continental U.S.
Repayment Plan Type
Term in Years
Initial Monthly Payment
Total Payment (Interest + Principal)
Standard 10
$1,898.83
$227,859.60
Extended
-fixed
-graduated 25
$1,145.22
$935.00
$343,566.00
$372,141.74
Graduated
$1,303.79
$240,166.70
Income Contingent 15
$1,068.50
$280,156.14
Income Based
$735
*depends on interest accrual and capitalization

20. Interest Payments in School
Year
Loan Balance
Interest Rate
Accrued Interest
Monthly Payment of Interest
New Loan Balance, cumulative 1L
$20,500
6.8%
$1,161
~$96.75
$21,661 2L
$2,556
~$213.00
$44,717 3L
$20, 500
$3,950
~$329.17
$69,167
Totals:
$61,500
$7,667
Impact on Payments, Standard 10 year repayment plan:
Loan Balance
Payment Amount
Total Cost
$61,500
$707.74
$84,924
$69,167
$795.98
$95,517

21. Reminders Live large now, live small later
Set realistic budgets, live like a student
Returning funds to the lender:
All funds returned within 120 days of disbursement, by the student or the school, have all interest and fees forgiven
Ideal: overestimated needs for aid
Student loans are not dischargeable in bankruptcy
Questions: Contact the Financial Aid office, even after you graduate!

22. Helpful Websites www.studentaid.ed.gov www.finaid.org www.nslds.ed.gov
IBR Website & Calculator
Repayment Plans & Calculator

23. Questions?