Loan Repayment Strategies
Planning for Student Loan Repayment
Module 2
Tulane UniversityJeffrey HansonEducation Services
2 Develop your “Action Plan”
Don’t leave it to “chance” – create a strategic plan to repay your “educational mortgage”
Your Action Plan4 Steps
1. Take stock of your loan portfolio
2. Determine when repayment begins
3. Pick your repayment plan
4. Evaluate if “Consolidation” is beneficial
Remember, you must repay all that you owe!
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What do you need to know?
For each loan in your portfolio:Type of loanInterest rate (and when accrued interest capitalizes)
Amount owedWho to repay (and how to contact them)
When repayment begins/resumesCurrent status of each loanRepayment options
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Payment relief is available!Important “safety nets”
Postpone repayment temporarily using: Deferment Forbearance – also could temporarily reduce your
monthly payments
Adjust your monthly payment:
Income-driven repayment plans (e.g., PAYE, IBR) provide opportunity to reduce your monthly payment when income decreases
Contact your loan servicer for more information and to apply
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Loan Repayment“Top Ten” Vocabulary List
Grace
FFEL
Direct
Servicer
NSLDS
Standard
Extended
IBR and PAYE
Consolidation
Prepayment
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Make sure you understand these terms!
For more information …
Contact your loan servicer(s)
Online resources: Federal student loans: StudentAid.gov
Federal loan repayment: StudentLoans.gov
Federal Direct Consolidation Loans: StudentLoans.gov
National Student Loan Data System: NSLDS.ed.gov
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Opportunities tolearn more …
Understanding the Unique Nature of Federal Student Loans
Exploring the Student Loan Repayment Plans
Understanding the Income-Driven Repayment Plans
Estimating Your Monthly Student Loan Payments
Taking Stock of Your Student Loan Portfolio
Developing Your Student Loan Repayment Timeline
Choosing Your Student Loan Payment Plan
Understanding Student Loan Consolidation
Public Service Loan Forgiveness
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Check out all the loan repayment modules:
Be strategic:Take Charge ofLoan Repayment!
Jeffrey HansonEducation Services
Tulane University