Compare private loans and federal loans

Identify the specific terms of your private education loan

Assess your financial situation

Examine consequences of default

Discuss steps to improve your financial situation

If you don’t have these documents, you can provide estimates on the exercises or fill in the information after the session.

Designed to benefit students

Includes Direct student loans, PLUS loans, Consolidation loans

Awarded by your school based on the FAFSA

Offered by banks and other financial institutions

Vary in terms and benefits from bank to bank

Different repayment benefits

Cosigner required

Consolidation with federal student loans not an option

No interest subsidy

Lack of forgiveness provisions

Not dischargeable

Explore obligations associated with your private loan

Workbook page 3

Discussion questions:1. Will I have enough financial aid to cover my education-related expenses?2. Does my total financial aid exceed my total education-related expenses?3. Do my non-education-related expenses exceed my supplemental income?

Workbook page 5

Fill out the FAFSA

Use federal aid first

Make interest payments while in school

Make loan payments while in school

Factor your potential salary into borrowing decisions

Use credit cards sparingly

Graduate

Damaged relationship with cosigner

Reduced credit score

Difficulty getting a job

Higher interest rates on other major purchases

Contact your school’s financial aid office

or

Take a look at TG’s private loans page at

www.TG.org/PrivateLoans

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© 2013 Texas Guaranteed Student Loan Corporation