student loan exit session
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Student Loan Exit Session. Please complete and sign the Personal Data Sheet. Personal reference: Friend or family member living at different addresses Parent or nearest relative: Cannot be a spouse If you have a Perkins loan please sign the original repayment schedule. - PowerPoint PPT PresentationTRANSCRIPT
Student Loan Exit Session
Personal reference: Friend or family member living at different addresses
Parent or nearest relative: Cannot be a spouse If you have a Perkins loan please sign the
original repayment schedule. Please complete personal data sheet. Last Day of actual attendance:
– Separation Date June 8, 2007
All forms will be collected at the end of this session. If you do not have all the information necessary, you can email the information to [email protected]
Please complete and sign the Personal Data Sheet
Agenda
Loan Repayment Handbook Stafford Loans Perkins Loan Cancellation NU Private Loans Deferments / Forbearance Consolidation Credit Default
Federal Stafford Loans
Interest rates are variable and are subject to change every July 1st As of July 1, 2006 Interest is fixed at 6.8%
6 month grace period Subsidized Stafford loan will accrue interest after
the 6 month grace period Unsubsidized Stafford loan has accrued interest
since initial disbursement Accrued interest will capitalize at the end of the 6
month grace period 10 Year term
Perkins Loans
Fixed interest rate of 5% 10 Year term 9 month grace period with 0% interest Deferments are available Forbearance available up to 36 months Cancellation available in certain
circumstances Northwestern is the holder of this loan
Cancellations
Perkins loans are the only loans that can receive full or partial cancellations depending on employment or service
Teaching in certain school districts Full time special ed teacher Full time teacher of math, science, foreign
language and bilingual education Medical Technician, Health Care Provider Peace Corps, Teach for America Full time law enforcement, corrections officer.
Must be in the criminal division
NU Loan
Formerly known as the Parent/Student loan Recommended Optional Interest rates are variable and change every
Sept. 1st 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
DefermentsStafford and Perkins
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 loans accrue interest and interest is capitalized at the end of the deferment period if it is not paid.
Keep full term of loan
ForbearanceMost Student Loans
6 month intervals for a period up to 3 years.
Receiving forbearance results in higher payments once forbearance ends.
Interest will continue to accrue and will be capitalized if eligible at the end of the forbearance period if it is not paid.
Term is lost
Consolidation
Consolidation allows you to: Combine all your eligible federal education
loans into a new loan with a single payment Lengthen the payback period up to 30
years and reduce your monthly payment Stafford and Perkins loans are eligible for
consolidation. Do not consolidate your Perkins loan
if you qualify for full or partial cancellation
When can borrowers consolidate?
Anytime during the post-school, six month grace period
Anytime during repayment During a period of deferment or
forbearance
Advantages and Disadvantages of Loan Consolidation
Advantages– Possible lower interest
rate– May choose to lower
the monthly payment by extending the term (up to 30 years depending on size of loan)
– Single Payment to one lender
Disadvantages– In many cases a loss
of borrower benefits or incentives earned on the Stafford Loans
– Loss of some deferment benefits
– In some cases a loss of the grace period
– In some cases if the term is extended you will pay more interest
Repayment Schedules
Standard Repayment– Ten year maximum– Fixed Schedule of monthly payments– Minimum $50 monthly payment
Graduated Repayment– Monthly schedule starts with small payments that
increase gradually over time– You will pay a higher total interest
Extended Repayment Income-Sensitive Repayment
My Responsibilities
KEEP IN TOUCH WITH YOUR LENDERS/ SERVICER
Notify lender of change in demographic information or if unable to make payments for ANY reason
Make payments even if you have not completed the program
Make payments even if you are unable to obtain employment upon completion
Make payments even if a billing statement is not received
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
Default Consequences
Your academic records will be placed on hold.
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.
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.
To Obtain Additional Information
of Your Loans
Access information about Federal Loans, outstanding balances, disbursements, loan status, and holder by checking with the National Student Loan Data System (NSLDS) or FSA Ombudsman
www.nslds.ed.gov www.ombudsman.ed.gov
Payment Estimate and Other Calculators
www.mapping-your-future.org/features/loancalc.htm
www.collegezone.com/studentzone/416_900.htm
Student Loan Office
For students with Perkins and NU Loans You can check your account status or pay
online at www.mycampusloan.comStudent Loan Office
555 Clark Street, 3rd Floor Evanston, IL 60208
Questions
?
Good luck in all your future endeavors!
International NU loan
Intl. NU loans two types, A & B- A - Has an American citizen or permanent resident as a co-maker- B - Has 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 ( 09/08/2007) 10 year re-payment term Forbearance Re-payment
– Campus Partners (Passport Visa #) after 11/07– Wire Transfers