Graduate Student Exit Interview

Northwestern University

Anticipated permanent address. This address can always be updated on the lender website.

Personal references: friends or relatives living at separate addresses in the U.S.A.

Parent or nearest relative (other than your spouse)

If you have a Perkins loan, please sign the original repayment schedule.

Last day of actual attendance: June 12, 2009

All forms will be collected before the session begins. If you do not have all the information necessary, you can email the information to studentloans@northwestern.edu

Please complete and sign the Personal Data Sheet

International NU loan

Intl. NU loans have two types, A & B- A - An American citizen or permanent

resident as a co-maker- B - An International co-maker

Variable interest rates - change as of September 1st. of any year

International NU loan

Interest accrues as of first disbursement Unpaid interest will be capitalized at end of 3

month grace period ( 09/12/2009) 10 year re-payment term Forbearance

Agenda

Loan Repayment Handbook Federal Stafford Loan Federal GradPLUS Loan Repayment Plans Federal Perkins Loan Deferment Forbearance Cancellation/Forgiveness NU Private Loan NU Forbearance Credit/Default

Federal Stafford Loans

Subsidized Stafford loan will accrue interest after the 6 month grace period when repayment begins.

Unsubsidized Stafford loan has accrued interest since initial disbursement.

Loans disbursed before July 1, 2006 have variable interest rates subject to change every July 1st.

Loans disbursed after July 1, 2006 have a fixed interest rate of 6.8%.

6 month grace period ends December 12, 2009. Unpaid interest will capitalize at the end of the 6

month grace period. 10 year standard repayment term (other options

available)

Purple Handbook Pg 5

Federal GradPLUS Loans

Loans have a fixed interest rate of 8.5%. Interest has accrued since initial disbursement. Unpaid interest will capitalize when repayment

begins. Repayment begins within 60 days of the final

loan disbursement (no grace period). You may contact your lender and request a six

month forbearance period to coordinate with your Stafford Loans.

10 year standard repayment term (other options available)

Purple Handbook Pg 6

FFELP Repayment Plans

Federal Family Education Loan Program (FFELP)(Stafford and GradPLUS Loans only)

Standard Repayment Graduated Repayment Extended Repayment Income-Sensitive Repayment Income-Based Repayment (available 7/1/2009)

Choice of a repayment plan will depend on your eligibility for that plan. You can change to a different plan usually once a year provided you qualify for that plan. Check with your lender.

FFELP Repayment Plans

Options PaymentStructure

MaximumPaymentPeriod

Additional Features

Standard Fixed 10 years - Highest initial payment- Lowest total interest- No negative amortization

Graduated Tiered 10 years - Interest only payments initially- Payments increase incrementally- Monthly payments can’t be more than three times greater- than any other payment (“3 times rule”)-- No negative amortization

Extended Fixed or tiered 25 years - Lowest initial payment without considering income - To qualify in FFELP: FFELP debt must be > $30,000 New FFELP borrower > 10/7/98- No negative amortization

Income Sensitive

Adjusted annually based on total gross income

15 years - No negative amortization

Income Based (IBR) Eff. July 1, 2009

Adjusted annuallybased on:-- Household AGI-- Household size-- Poverty guideline

25 years - Payment is 15% of “disposable” income if experiencing “partial financial hardship” (PFH)- Eligibility/payment amount reevaluated annually- Negative amortization allowed

Comparing Payment Plans$100,000 Stafford Loan Balance

Options Standard Graduated Extended IBR

Monthly Payment

$1,151 $567 (2 yrs)

$1353 (8 yrs)

$694 $305 (1st yr)

$457 (9th yr)

$885 (23rd yr)

Maximum Payment Period

10 years 10 years 25 years 22.9 years

Total Paid $138,096 $143,530 $208,222 $215,592

Assumptions: - 6.80% fixed interest rate with $100,000 of loan debt - No payment incentives - For IBR Payment:

- Household AGI = $40,000 in year 1, then increases by 4 % annually

- 2008 Poverty Guideline for household size of 1 = $10,400

For more information on IBR and Public Service Loan Forgiveness

“Project on Student Debt” has created a special Website specifically about IBR at : IBRinfo.org

Equal Justice Works has information about both programs at: EqualJusticeWorks.org

Loan Calculators at: FinAid.Org/calculators

Perkins Loans

Northwestern is the holder of this loan Fixed interest rate of 5% 10 year repayment term 9 month grace period with 0% interest ends

March 12, 2010 Deferments are available Forbearance available up to 36 months Cancellation available in certain circumstances

Purple Handbook Pg 10

Deferments

Deferment allows you to postpone payments for several reasons including:

Returning to school– deferments are unlimited

Unemployment and Economic Hardship– deferments available up to 36 months

Subsidized Stafford and Perkins loans do not accrue interest during periods of deferment.

Unsubsidized Stafford and GradPLUS loans do accrue interest during periods of deferment. Unpaid interest is capitalized at the end of the deferment period.

Purple Handbook Pg 7 & 11

Forbearance

Forbearance is an agreement with your lender to reduce or postpone payments when you are having financial difficulty and do not qualify for a deferment.

Documentation is required to verify your income and student loan debt.

Interest will continue to accrue on all loans during the period of forbearance.

Unpaid interest will be capitalized at the end of the forbearance period.

Purple Handbook Pg 6

Loan Cancellation/Forgiveness

Under certain circumstances, your student loan, or a portion of your loan, may be cancelled, forgiven, or discharged; in other words, you won't have to repay it.

Some loans are cancelable in the case of death or permanent disability.

Although most cancellation/forgiveness benefits are for the Federal Perkins Loan (for example: Medical Technician, Health Care Provider, Peace Corps, Teach for America), forgiveness for service in areas of national need is available for Federal Stafford and GradPLUS Loans. Stafford and Perkins loans both have forgiveness benefits for teaching in certain school districts.

Details are available at: mappingyourfuture.org/paying/forgiveness.htm

If you think you are eligible for loan cancellation or forgiveness, contact your loan holder. Be sure to contact all of your loan holders, and don't stop making payments until you receive written notification from each one that your loan has been cancelled.

If only a portion of your loan was cancelled, update your records with your new balance after verifying the information with your loan holder.

Purple Handbook Pg 12

Federal Consolidation Loan

The Federal Consolidation Loan program allows you to:

Combine all your Federal Stafford, GradPLUS, and Perkins loans into one new loan with a single payment.

Lengthen the repayment term up to 30 years and reduce your monthly payment.

Contact the Direct Loan Consolidation Center at:– 800/557-7392– loanconsolidation.ed.gov

Do not consolidate your loan if you qualify for full or partial cancellation/forgiveness as those benefits will be lost.

Purple Handbook Pg 16

Finding Your Federal Loans

www.nslds.ed.gov

To access you must provide:

- SSN

- Date of Birth

- First 2 letters (last name)

- PIN # (www.pin.ed.gov)

FSA Ombudsman

The FSA Ombudsman is an impartial, confidential resource after other avenues are exhausted to resolve borrower concerns.

To request mediation regarding federal student loan issues, you may contact the Office of the FSA Ombudsman at:

– 877/557-2575– ombudsman.ed.gov

Purple Handbook Pg 24

Private NU Loan

Recommended – 7.00% Optional – 7.50% Interest rates are variable and change each Sept

1st 3 month grace period ends September 12, 2009 Interest accrues from date of first disbursement.

Unpaid interest will be capitalized at the end of the 3 month grace period.

10 year repayment term NU Loans are eligible for forbearance only NU Loans are private loans and cannot be

included in a Federal Consolidation Loan.

Purple Handbook Pg 14

NU Loan Forbearance

6 month intervals of forbearance for a period up to 3 years.

Interest will continue to accrue during the period of forbearance. Unpaid interest will be capitalized at the end of the forbearance period.

May result in higher monthly payments once the forbearance ends due to the shortened repayment term.

Forbearance forms are available on the SFS website under “Downloadable Forms”.

www.northwestern.edu/sfs/

Purple Handbook Pg 15

Loan Repayment Summary

Current Principal Balance

Accrued Interest

Repayment Interest

Date Interest

Capitalizes

Current Interest

Rate

Number of P & I

Payments

Estimated Monthly Payment

Monthy Payment

Starts

Federal Subsidized Stafford Loan8,500.00 3,238.00 6.80% 120 98.00 Jan-10

Federal Unsubsidized Stafford Loan10,000.00 855 3,810.00 12/13/2009 6.80% 120 115.00 Jan-10

Federal Perkins Loan12,000.00 3,600.00 5.00% 120 130.00 Apr-10

NU Loan30,000.00 1,569.02 15,962.32 9/12/2009 7.00% 120 383.00 Sep/Oct 09

NU Loan (GPAL)25,000.00 724.31 11,642.26 9/12/2009 7.50% 120 305.00 Sep/Oct 09

GradPLUS14,500.00 444.51 7,073.50 6/12/2009 8.50% 120 180.00 Jun/Jul 09

Your Credit

All of your federal loans are reported to at least one credit bureau.

Factors reported:– Timeliness of your payment– Non payment – Outstanding balance

Credit score will affect your ability to obtain credit

Free annual credit reports are available at:

www.annualcreditreport.com

Purple Handbook Pg 4

Consequences of Default

Your academic records will be placed on hold.

You may be liable for all collection costs.

You may be subject to Administrative Wage Garnishment.

You may be sued with court costs and legal fees added to your balance.

Purple Handbook Pg 17

Your income tax refund may be withheld.

Your credit rating and ability to borrow will be seriously damaged.

You may lose future eligibility for financial aid and student loans.

Your professional license could be denied or revoked.

You may be denied certain jobs.

Your Responsibilities

KEEP IN TOUCH WITH YOUR LENDERS/ SERVICERS

Notify lenders/servicers of name and address changes. Make payments even if you have not completed the

program Make payments even if a billing statement is not

received Contact lender/servicer BEFORE you miss a payment if

unable to make payments for ANY reason.

Review promissory note for all rights and responsibilities

Go Green – on line

Access Account Information Make E-Payments Sign up for autodraft Sign up for E-Bill Update your address

mycampusloan.com

Student Loan Office

For students with Perkins and NU LoansStudent Loan Office

555 Clark Street, 3rd Floor Evanston, IL 60208

847-491-3125studentloans@northwestern.edu

Purple Handbook Pg 20, 22

1098E Statements

Provided by each lender for eligible payments of student loan interest, capitalized interest, or origination fees.

Amounts paid of $600 or more are being reported to the IRS.

Information can be found in IRS Publication 970.

www.irs.gov

Please contact a tax professional to discuss your eligibility.

Questions

?For Additional Info

One-on-One Exit InterviewsContact:

Marion Feinberg / Colleen DelaneyStudent Financial Services Counselor

847-491-8950m-feinberg@northwestern.educ-delaney@northwestern.edu

Good luck in all your future endeavors!