Federal Student Loan WorkshopNew Student Orientation 2015

Enrollment Services Student Support Center103 Wilder Tower

Memphis, TN 38152

Student Financial Aid OfficePhone: (901) 678-4825

Fax: (901) 678-3590Website: www.memphis.edu/financialaid

E-mail: financialaid@memphis.edu

Financial Aid Process

Financial Aid Process

Fee Payment Deadline:August 21, 2015

Who Qualifies for Federal Student Loans?

• Student who completes the FAFSA• U.S. citizen or an eligible non-citizen (permanent

resident)• Degree-seeking student• Enrolled in at least half time (6 hours)• Making Satisfactory Academic Progress

Student is the borrower

Parent is the borrower

What You Should Know About Student Loans:They Must Be Paid Back!

Type of Loan

Need Based

RequiredEnrollme

nt

Interest Rate

Interest Accrual

Grace Period

Subsidized Loan

Yes At least six hours

4.29%*Interest free while in school

6 months

Unsubsidized Loan

No At least six hours

4.29%* Not Interest free while in school

6 months

Parent Plus for UG Students*Apply via studentloans.gov and undergo a credit check

NoAt least six

hours 6.84%*

Not Interest free while in school

NA*The parent can

apply for in-school deferment

How Much Can Students Borrow?Dependent Loan Amount

Grade level(earned hours)

Subsidized or Unsubsidized

Additional Unsubsidized

YearlyTotals

Freshman 1-29 hrs 3,500 2,000 5,500

Sophomore 30-59 hrs

4,500 2,000 6,500

Junior 60-89 hrs 5,500 2,000 7,500

Senior 90+ hrs 5,500 2,000 7,500

TOTAL 19,000 8,000 27,000

Lifetime limit: Dependent Student = $31,000

You are responsible for monitoring how much you’ve borrowed. Keep up with your federal loans at the National Student Loan Data System at http://www.nslds.ed.gov

Parent Loan for Undergraduate Students (PLUS)

• Next option if additional funds are needed• Parent is the borrower• Apply on-line at www.studentloans.gov • A credit check is required• If approved, parent must complete a Master

Promissory Note (MPN) at same website• Parent can request in-school deferment

Loan Repayment ExamplesTotal Borrowed $15,000 $40,000

Monthly Payment $173 $460

Total Owed/Paid $20,714 $55,239

This example is based on a standard repayment plan for undergraduate or graduate borrowers at a 6.8% interest rate with 120 monthly payments. (Source: studentaid.ed.gov)

• You are NOT required to take out the maximum amount of loans• Visit www.nslds.ed.gov to monitor your loans• Stafford loans have variable interest rates, but they are capped at 8.25%

(changes every July 1st)

Budget Example #1(Off-Campus Student)

Semester Estimate

Costs AwardsTuition $4,482 HOPE $1,750Dining Dollars$ 300 Pell Grant $2,887

Loan $2,750Total $4,782 Total $7,387

Balance Refunded: $2,605(Do you need the loan? What about a reduced amount?)

Budget Example #2(On-Campus Student)

Semester Estimate

Costs AwardsTuition $4,482 HOPE $1,750Dining Dollars $ 300 Pell Grant $2,887Room/Board $4,000 Loan $2,750Total: $8,782 Total: $7,387

Balance Owed: $1,395(Consider the Installment Payment Plan; otherwise, next option is the

PLUS)

Next Steps?

• Work on a budget. – Do you really need a loan and/or a PLUS?– Is the Installment Payment Plan an option? Check Bursar’s Office

website for details.

• Review loan amounts on your myMemphis account;

accept amount needed.

• Complete the Master Promissory Note (MPN) and the

Entrance Counseling at www.studentloans.gov.

• Sign up for eRefunds (under TigerXpress) if you expect a

refund. (The Bursar’s Office is responsible for eRefunds.)

Checking for Red Flags on myMemphisFinancial Aid RequirementsRed flag – incomplete

Green check mark – item received/completed

Financial Aid Awards

Click Financial Aid Awards Link

Proxy Access

• Students can log in to myMemphis to give parent/guardian authorization to see selected Financial Aid information

• Proxy will be emailed to set up access• Student will confirm what they want

Proxy to be able to view

Enrollment Services Student Support Center103 Wilder Tower, Memphis, TN 38152

FA/Bursar Satellite Location at 12pm