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Congratulations Class of 2014! From: The Financial Aid Office Team

Jan 31, 2016

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Congratulations Class of 2014! From: The Financial Aid Office Team. (Atheia, Jacqui, Kristin, Melissa, Sean, Sue, Tom, Usha). Exit Interview Goals. BASICS Rights/responsibilities servicer requirements Verifying the accuracy of your debt STRATEGIES Repayment Hierarchy & overall strategies - PowerPoint PPT Presentation

  • *Congratulations Class of 2014!

    From: The Financial Aid Office Team(Atheia, Jacqui, Kristin, Melissa, Sean, Sue, Tom, Usha)

  • *Exit Interview GoalsBASICS

    Rights/responsibilities servicer requirementsVerifying the accuracy of your debt

    STRATEGIES

    Repayment Hierarchy & overall strategiesWhat to do/when to do itForbearance or Income Based Repayment or something else??Consolidation Tax BenefitsDont Default!!

  • *Loans to cover1) Institutional loansTJU loanAlumni loanPerkins loanPCLDonor named2) Stafford3) Grad PLUS4) Private alternative loans

  • *Submit before you leave presentationStatement of Attendance Repayment Schedule (only for those with Jefferson loans)

    Survey we will email you a Survey Monkey link prior to March 15

    Remember to complete federally required online EXIT counseling at http://studentloans.gov

  • *TJU Debt RecordIncludes all aid you received each academic year

    Loans reflect Principal amount only payments & interest are not reflected

    Bottom of sheet tallies your total loan principal debt by Banner code

  • *Institutional & Institutionally administered LoansFederal Perkins LoanAlumni Loan, Simpson Loan, Levi Loan, TJU Loan etc.Federal PCL and LDS

    Serviced by Xerox/ACS, Inc.(800) 826-4470 http://acs-education.com

    Mailing of payments to:

    With coupon:Without coupon:Xerox Educational ServicesXerox Educational Services, Inc PO Box 3295 CPS Monetary ProcessingMilwaukee, WI 53201-3295 PO Box 7061 Utica, NY 13504-7061 All institutional loans get repaid to the University via Xerox (ACS)

    Your TJU contact person:

    Rebecca Reynolds1020 Walnut Street, Room 521Philadelphia, PA 19107(215) [email protected] by Xerox/ACS, Inc. (800) 826-4470 http://acs-education.com

  • *

  • *Jefferson is the lender for.Institutional loans (e.g., TJU Loans, Alumni Loans, Morgan Loan etc.)

    Certain Federal LoansFederal PerkinsFederal Loans for Disadvantaged StudentsFederal Primary Care Loans

  • *TJU Loan Repayment ScheduleThe Repayment Schedule Lists:payment start datemonthly payment amountrepayment periodinterest rate Amount of interest that will accrue over life of loantotal loan cost (interest and principal)

  • *Jefferson Loan Parameters Jefferson Loans aka TJU Loan, Alumni Loan, or loan named after Donor (Morgan, Simpson, Mills etc.)12 month grace only (exceptions: Wayland, Robt. Wood Johnson, Sledd Cunnison loan have post graduate training deferment options beyond Grace period)

    10 year repayment

    Fixed 5% interest rate (exceptions: Wayland, Kellogg, Snyder, Bacharach, and Robt Wood Johnson have reduced interest rates)

    Cancelled upon Death/permanent disability

    Jefferson is the lender/Xerox-ACS is the Servicer

  • *Federal Perkins Loan ParametersFederal Perkins 9 month graceForbearance is permitted6 month grace before repayment begins10 year repaymentFixed 5% interest rateCancelled upon Death/permanent disability

    CAN BE CONSOLIDATED WITH FEDERAL STAFFORD/GRAD PLUS!

    Jefferson is the lender/Xerox-ACS is the Servicer

  • *Federal LDS Loan ParametersLoan for Disadvantaged Students

    12 month graceDeferment is permitted for 3 year Residency10 year repaymentFixed 5% interest rateCancelled upon Death/permanent disability

    CAN BE CONSOLIDATED WITH FEDERAL STAFFORD/GRAD PLUS

    Jefferson is the lender/Xerox-ACS is the Servicer

  • *Federal PCL Loan ParametersPrimary Care Loan12 month graceDeferment is permitted for 3 yr Residency10 year repayment (20 years max if requested depending on loan amount)Fixed 5% interest rateCancelled upon Death/permanent disability

    Has requirement to work in Primary Care (as defined in promissory note) while loan is in repayment

    Cannot be consolidated!

    Jefferson is the lender/Xerox-ACS is the Servicer

  • *Who is Who? Lender who lends the moneyGuarantor who guarantees the funds to the lender if you do not repayServicer MOST IMPORTANT they have processed your loan, disbursed the funds and will be collecting your payments and working with you on deferment/forbearanceMany to most borrowers only have a servicer due to Direct Lending

  • *ForbearanceWhat is it? Postponement of your federal loans for a set period of time - usually for 12 months at a time.

    Available for duration of residency for Stafford, Grad PLUS and Federal Consolidation LoansApplication required at least annually most servicers require a form for sign-off from Housestaff OfficeMandatory that servicer grant forbearance for duration of residency but borrower MUST ask for it and complete formInterest accrues and may capitalize on all loans, subsidized and unsubsidized confirm with your servicer

    Use only after you have exhausted your grace period

  • *Federal Stafford Loan (FFELP/Direct Loan) 6 month grace period

    Eligible to apply for Forbearance

    Can be consolidated with Grad PLUS, Perkins, LDS

    Interest rate - If borrowed:7/1/13 to 6/30/14 fixed 5.41%7/1/06 to 6/30/13 fixed 6.8%; Prior to 6/30/2006 - Rate is variable on all loans that are not consolidated.

    10 year repayment is standard can ask for longer repayment period (see loan repayment slide)

    Cancelled upon Death/permanent disability

  • *Federal Graduate PLUS No grace period (check with servicer- many grant auto-forbearance for 6 months to align with Stafford)

    Eligible to apply for Forbearance just like Stafford

    Can be consolidated with Stafford, Perkins, and LDS

    Interest rate - If borrowed:7/1/13 to 6/30/14 fixed 6.41%7/1/10 to 6/30/13 fixed 7.9%; 7/1/06 to 6/30/10 fixed 8.5%

    Prior to 6/30/2006 loan was available to parents only

    10 year repayment is standard can ask for longer repayment period- (see loan repayment slide)

    Cancelled upon Death/permanent disability

  • *Private Alternative Loans (includes Residency/Relocation loans)Usually 6 to 9 month grace (interim) period

    Most deferred for at least 3 years during residency read promissory note or call lender to check parameters on length of forbearance and necessary documentation of internship/residency Interest rate will change as frequent as the index used (indexes include 30 day LIBOR; 91 day LIBOR; PRIME RATE)

    there is usually no ceiling on the interest rate.

    Not cancelled upon death or permanent disability

  • *Finding Your Federal Loans on NSLDS.ed.govTo access, provide:- SS# - Date of Birth- First 2 letters (last name)- PIN # (www.pin.ed.gov)www.nslds.ed.gov

  • *Contact all of your loan Servicers REQUIRED!45 days before or after your last date of enrollmentConfirm That you are no longer enrolledrepayment amount/amount owedGrace period:Start date End datewhen first payment is due!!!when Forbearance form should be submitted(for Stafford and Grad PLUS) Call first - then follow up in writing if you think this is necessary keep copy of written letter for your fileUpdate your address

  • *Dates To Remember- What to do and when to do it! (See chart in handout-page 2)Grace periods relate to each individual loan borrowed. If you have consolidated any loans, you have used the grace period and repayment will start immediately at graduation (check with servicer for exact date). Federal Grad PLUS loans have no grace period as well (check with servicer to confirm options such as immediate forbearance). If you used the full 6 month Grace period on a loan or group of loans (e.g., between college and TJU, leave of absence) you do not get another grace period on these loansFILE FOR FORBEARANCE 2 - 4 WEEKS BEFORE REPAYMENT DUE DATE Standard form is usually necessaryIf no consolidation or if loan was never in repayment, 6 month grace period still exists.

  • FFELP vs. DIRECT LoansFFELP Federal loans borrowed from a bank/lender (e.g., Wells Fargo, Citibank). Most have been turned over to federal servicer

    DIRECT - Federal loans borrowed directly from government; only lender beginning 7/1/10 sometimes referred to as a DL loan*

  • *Current Repayment OptionsStandard (Level) Repayment Extended RepaymentGraduated RepaymentIncome Sensitive Repayment FFELP onlyIncome Contingent Direct Loans only

    Income Based Repayment FFELP and Direct Loans NEW 7/1/09Pay As You Earn (PAYE) New 12/2012

  • * Loan Repayment Plans Standard (Level)Level monthly payments over 10 year period Higher monthly payments - Lowest overall cost

    Extended (Level)*Level monthly payments over 25 year period

    *Must have an outstanding balance of more than $30,000 in Stafford Loans on or after October 7,1998

  • *GraduatedPayments start low, increase usually every two yearsFFELP must have more than $30,000 outstandingDL monthly payment calculated based on DL debt and interest rates of loans; never less than monthly interest accrual Higher overall cost - Good for early cash flow, but remember cost!Income Sensitive - FFELP Program OnlyPayments tied to incomeFinish in 10 years (may be extended to 15 years)Income Contingent - Direct Loan Program OnlyMonthly payment amount calculated based on borrowers household income, family size, and total Direct Loan debt.

    Loan Repayment Plans

  • *Loan Repayment PlansIncome Based Repayment (IBR)caps loan payments at 15% of your household income that exceeds 150% of the federal poverty guideline for your family size payment amount will change with increase in income25 years repayment periodCalculation includes ONLY Federal education loans - cannot include Perkins or LDS unless you have had these loans included in a Federal Direct Loan consolidationMust provide income verificati