1. 1 Choosing to Understand: Student Loans

2. 2 How are you paying for college?

3. 3 Student Loan Debt Nationwide Source: Source: American Council on Education Issue Brief, November 2001  Average student loan debt nationwide for undergraduates is $15,375.  Average student loan debt nationwide for graduates is $32,716 (includes undergraduate debt).

4. 4 Repayment Options  Standard Repayment  Graduated Payments  Income Sensitive  Extended Repayment  Loan Consolidation Source: Source: U.S. Department of Education (www.ed.gov)

5. 5 Interest on My Student Loan A “subsidized” student loan: the federal government will pay the interest on your loan while you are in school. An “unsubsidized” loan: you are responsible for paying interest that begins accruing when you receive the loan. Source: Source: U.S. Department of Education (wwww.ed.gov)

6. 6 Estimated Repayment for Federal Direct Subsidized Loan *Minimum monthly payment Source: Source: Dear Student Letter, OSFA

7. 7 Undergraduate Repayment Source: Source: Dear Student Letter, OSFA

8. 8 Graduate Repayment Source: Source: Dear Student Letter, OSFA

9. 9 Salary Requirements Minimum Gross Annual Income Needed to Meet 8% Rule* Source: Source: Dear Student Letter, OSFA

10. 10 Median Incomes Nationally for Bachelor Degree Source: Source: College Placement Council Annual Salary Survey, July 1999

11. 11 Examples of Default Rates for Georgia Schools Cohort FY 00 Medical College of Georgia 0.2% Emory University 1.3% Georgia Institute of Technology 1.5% Berry College 2.6% Morehouse School of Medicine 2.9% University of Georgia 2.9% Kennesaw State University 3.6% Atlanta School of Massage 3.8% National 5.6% Ultrasound Diagnostic School 6.3% University of Georgia 6.4% Empire Beauty School12.1% Source: Georgia Student Finance Commission (www.gsfc.org)

12. 12 Delinquent vs Default Delinquent: failure to repay your loan on time in accordance with the terms of your promissory note. Delinquency begins on the day following your loan payment due date. Default: failure to repay as agreed and the failure has continued for 270 days.

13. 13 If you don’t repay your loan on time... You’ll grow to hate going to your mailbox. You could have your. automobile impounded. You’ll be leery about answering your telephone. You could lose a professional license issued by the state. You could forfeit a state or federal income tax refund. Your employer could find out. Your pay could be garnished. You could be sued.

14. 14 The Main Points  Student loan debt adds up quickly  Have realistic expectations of your starting salary so you can estimate how much student loan debt you can afford  Not paying back student loans can have major consequences  Student Loans are NOT free money  Only ask for what you NEED

15. 15 For Individual Help Contact: Consumer Credit Counseling Service https://onlinecounsel.cccsatl.org/gheac.asp 866-829-3438 (referral #017)