2014Financial Aid Exit InterviewCollege of Dentistry

College of Dentistry Class of 2014

University of Illinois at Chicago

Your Loan Summary

https://studentloans.gov/myDirectLoan/index.action Your Loan Summary is based on information from the

National Student Loan Database System (NSLDS). NSLDS does not include private or institutional loan

information. You should review your loan information for Stafford,

PLUS, and Perkins Loans at www.nslds.ed.gov. You should review HPSL Loans at www.acs-

education.com.

Your Rights and Responsibilities

You have the right to notification in writing if your loan is sold or transferred to another lender.

You have the right to prepay all or any portion of your loans without penalty.

You have the right to a minimum of 10 years to repay your loans unless you consolidated and qualify for an extended repayment schedule.

You are responsible for your loan and accrued interest. You are responsible for notifying your lender if you change

your name, address, Social Security number, etc.

Default

Failure to repay a loan according to the terms of the promissory note is called default.

If you cannot make your payment, it is your responsibility to contact your lender(s) and request a deferment or forbearance.

Default Repercussions

If debtor enters default, the entire balance of the loan may become due immediately.

Loan defaults will be reported to credit bureau's, which will result in a negative credit report.

Wages may be garnished. Debtors account may be forwarded to collection

agency. Debtor may lose their professional license.

Terms of Loans

Perkins Loan*Grace Period: 9 months*Interest Rate: 5%*Repayment Length: 10 years*Eligible for Consolidation: Yes*Eligible for Deferment/Forbearance: Yes*No interest accrues during deferment

Stafford Loans

Stafford Subsidized Loans

*Grace Period: 6 months*Interest Rate: 6.8%*Repayment Length: 10-25 years (repayment

depends on plan you choose)*Eligible for Consolidation: Yes*Eligible for Deferment/Forbearance: Yes*No interest accrues during deferment.

Stafford Loans

Stafford Unsubsidized Loan*Grace Period: 6 months*Interest Rate: 5.41-6.8%*Repayment Length: 10-25 years (repayment

depends on plan you choose)*Eligible for Consolidation: Yes*Eligible for Deferment/Forbearance: Yes*Interest accrues during deferment.

Graduate PLUS Loan

Grad PLUS Loan*Repayment begins 6 months after graduation*Interest Rate: 6.41-7.9%*Repayment Length: 10-25 years (repayment

depends on plan you choose)*Eligible for Consolidation: Yes*Eligible for Deferment/Forbearance: Yes*Interest accrues during deferment.

Health Professional Student Loan (HPSL)

HPSL Loan*Grace Period: 12 months*Interest Rate: 5%*Repayment Length: 10-20 years (repayment

depends on plan you choose)*Eligible for Consolidation: Yes*Eligible for Deferment: Yes*Forbearance: Negotiable*No interest accrues during deferment.

Private Loans

Private Loans*Grace Period: Varies by year and lender *Interest Rate: Varies by lender*Repayment Length: Varies by year and lender*Eligible for Consolidation: No*Eligible for Deferment: Yes*Forbearance: Yes*Interest accrues during deferment.

Typical Grace Periods

Stafford Loan: 6 months (subsidized and unsubsidized) Perkins Loan: 9 months Graduate PLUS Loan: 6 months HPSL Loan: 12 months

If you are planning on using a deferment, you must wait until after your grace period is exhausted.

Deferment

A deferment is period of time when a borrower is exempt from having to immediately begin repaying a loan.

Deferments are regulated by the lender. The criteria for deferment is set by the lender. Typical deferment

conditions are continuing education, economic hardship, inability to find full-time employment, and active military duty. If you enroll in residency program more than half-time, you will continue to qualify for an in-school deferment.

Please note that you must continue to repay your loans until you have been notified that your deferment request has been granted.

Forbearance

Forbearance occurs when your lender agrees to either temporarily reduce or postpone your student loan payments.

If you are granted a forbearance, interest will continue to accrue regardless of the type of loan you have.

Always see if you are eligible for a deferment first, due to the way that the subsidized loan interest is treated.

Repayment Options

Standard Plan is a fixed annual repayment paid over a fixed period not to exceed 10 years.

A Graduated Plan is paid over a fixed period of 10 years. The payments start relatively low and then increase, generally every two years.

Extended Plan for borrowers with more than $30000 can repay their loan with a fixed or graduated amount for a period that cannot exceed 25 years.

For Perkins or HPSL, you should contact your lender.

Income-Based Repayment Plan (IBR) StudentAid.ed.gov/IBR Based on your income and family size; AGI-150% federal poverty level=discretionary income. You pay

15% of the discretionary income. For example, 150 percent of the 2011 HHS poverty guideline

amount for a family of three in the 48 contiguous states and the District of Columbia is $27,795. If your AGI was $40,000, the difference would be $12,205. Fifteen percent of that is $1,831; dividing this amount by 12 results in a monthly IBR payment amount of $153. this compares with a monthly payment amount of $518 under a 10-year Standard Repayment Plan (based on an eligible loan debt amount of $45,000).

Income Based Repayment

You may pay more interest. Reduced payment generally extends your repayment period.

You must submit annual documentation Government pays interest on Subsidized Loan up to

3 years. Forgiveness for payments made over a period of 25

years. You may pay taxes on any loan amount that is forgiven after 25 years.

https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action

Pay As You Earn (PAYE)

based on your income and family size; 10% of discretionary income

adjusted each year, based on changes to your annual income and family size;

If your PAYE payment amount doesn’t cover the interest that accrues on your loans each month, the government will pay your unpaid accrued interest on your Direct Subsidized Loans

never more than the 10-year standard repayment amount; Forgiveness for payments made over a period of 20 years.

Differences between PAYE and IBR

PAYE capped at 10% of discretionary income (IBR is 15%) PAYE can't qualify if loans borrowed prior to 2007 PAYE has loan forgiveness after 20 years (IBR is 25) Only loans made under the Direct Loan Program are eligible

for PAYE, but both Direct Loans and Federal Family Education Loans (FFEL) are eligible for IBR.

You may have to pay income tax on any amount that is forgiven.

Consolidation

Consolidation is the process of combining two or more loans into a single loan with a single set of monthly payments.

The interest rate for a consolidated loan is fixed for the life of the loan.

The fixed rate is based on a weighted average of all of the loans that you choose to consolidate.

You can consolidate during your grace period or during periods of deferment or forbearance. You can also consolidate once you’ve entered repayment.

Consolidation: Pros and Cons

Pros: *Your monthly payment might be lower. One monthly bill. You

will receive a fixed interest rate.*You can take a longer time to repay (up to 30 years).

Cons:*Extended repayment mean more interest paid over the life of

the loan.*Once a loan is consolidated, it cannot be revoked. It is not

subject to the same terms of the previous underlying loans. Consider the impact of losing any borrower benefits offered with the original loans. Borrower benefits from your original loan, which may include interest rate discounts, principle rebates, or loan cancellation.

Credit Report

The three nationwide consumer reporting companies (Equifax, Experian, and, TransUnion) allows you one free copy of your credit report once every 12 months.

To order visit www.annualcreditreport.com or call 1-877-322-8228.

Remember

• Make a budget and stick with it. • If you don’t understand something, call your loan holder or loan servicer or your financial aid office. • Keep all student loan documents in a file. • Open all your mail and read everything pertaining to your student loans. • Keep in contact with your loan holder or loan

servicer and keep your address current. • Make all regularly scheduled payments.

OSFA Contact Information

Office of Student Financial Aid (MC 334)Room 1800, Student Services Building

1200 West Harrison StreetChicago, Illinois 60607-7163

Phone: (312) 996-3126E-mail: tjhard@uic.edu

nicolel@uic.edu Web Site: www.financialaid.uic.edu

(Select “Financial Aid” option)

Questions?????