Feb 25, 2016
Can I pre-pay on my loans?
Learn Moresfa.mst.eduYes-If sending in a prepayment, make sure you inform the lender to apply the prepayment to the principal of theloan balance
-There is no prepayment penalty7What repayment plans are available? StandardGraduatedExtendedIncome-sensitive (FFELP only)Income-contingent (FDLP only)Income-basedOverview of repayment plans
Learn Moresfa.mst.edu8Taking InventoryWhere can I obtain information on my federal loans?
National Student Loan Data System (NSLDS)http://www.nslds.ed.gov/
Provides loan amounts, loan holders, and loan servicersWhat happens to my loans when I leave school? A FFELP or Direct Stafford loan either: Will enter a 6-month grace period Will enter repaymentA Perkins loan either: Will enter a 9-month grace period Will enter a 6-month post-deferment grace periodA Grad PLUS loan either: Will enter a 6-month deferment Will enter repaymentA federal consolidation loan: Will enter repaymentA private or alternative loan Contact the lenderWhat should I expect from my loan holder/servicer? Repayment disclosure notices-Outlines the terms of the loan(s) borrowed-Provides the repayment options available-Establishes the first payment due dateHow do repayment plans work?Standard: -Lowest total loan cost. - Regular payments of both principal and interest are due monthly, excluding periods of deferment and forbearanceMinimum monthly payment is $50 with 10 yr repayment Graduated: -Monthly payments are smaller at the start of the repayment period and gradually increase every two years-10-year repayment termTotal amount paid in interest will be greater than under the standard repayment plan
Repayment Plans contExtended: -Lengthens repayment term up to 25 years-Available to borrowers with more than $30,000 in federal student loans (per program)Total interest costs may be higher over life of the loan, although monthly payment amount may be lower
Repayment plans contIncome-sensitive (FFELP):-Offered only to borrowers under the FFELP-Monthly payment varies according to gross monthly income-Monthly payment covers at least monthly accruing interest-Must reapply annually-Total interest costs will be higher over the life of your loan than with standard repayment-Maximum repayment period is 10 yearsRepayment plans contIncome-contingent (FDLP):-Offered only to borrowers under the Direct Loan Program Monthly payment based on adjusted gross income, family size, and total Direct Loan debt -Maximum repayment period is 25 years, and any balance after 25 years (time spent in deferment or forbearance does not count) is forgiven.
What is income-based repayment (IBR)?
Learn Moresfa.mst.eduIBR is designed to help borrowers experiencing a partial financial hardship.
Available to Stafford, Grad PLUS, and certain consolidation borrowers.
13How do I apply for IBR?Contact loan holder/servicer and request an IBR planIBR forms available at:http://studentaid.ed.gov/PORTALSWebApp/students/english/IBRPlan.jsp-Borrower must:Apply annually (payment amount may fluctuate)-Provide permission for IRS to disclose AGI "and other tax return information-Certify family size
Basics of Consolidation Consolidation enables you to bundle one or more federal student loans into a single new loan. At time of consolidation, your consolidating loan holder pays off the outstanding balances of the loans you include in the consolidation. No fees.
15 Thank you for the opportunity to talk with you today about the University of Missouri-Rolla. Most everyone is related to or knows someone who attended UMR, right? (ask for a show of hands.) It was founded 130 years ago as the Missouri School of Mines and became the University of Missouri-Rolla in 1964. It has always been a leading engineering and science school and then formally added degrees in the liberal arts in the mid-60s. As your show of hands just proved, our greatest strength is our reputation. People who know our graduates or companies who hire our graduates say they are among the best educated, most practical professionals in the country and around the world.
And this tradition is still alive today. We have a greater variety of engineering specialties than almost any university. UMR has 13 accredited programs at the undergraduate level as well as two additional programs at the masters level to total 15 different disciplines. (Weve also just added manufacturing engineering and systems engineering at the masters level so when we have graduates from these programs well have 17 accredited disciplines.) Only one other program in the nation (out of 325) has that many programs. (Penn State with 17) (Note: Florida, Illinois UC, NC State, Purdue, Texas A&M, and VPI, all have 13).
We all will live and work in a technological society, even if we major in the sciences or liberal arts. Whats unique about UMR is that these programs benefit from the access to the high tech facilities and faculty. Students apply their studies to real world challenges and learn first-hand their importance in a technological society. Students at UMR may also choose to minor in the arts or sciences, such as communications or economics, for example, which is a very marketable combination as you might suspect.
Who can consolidate? Any federal student loan borrower, including:Borrowers with student loans.Borrowers with student & parent loans.
How do I qualify? You must be in your grace period or in repayment on each loan being consolidated. You can still obtain a Consolidation loan if you are delinquent or in default on one or more of your existing loans.
17What loans may be consolidated? Federal Family Education Loans Federal Direct Loans Federal Perkins Loans Health Professions Student Loans Nursing Student Loans Health Education Assistance Loans
Learn Moresfa.mst.edu18What loans may not be consolidate? Private (alternative) education loans Other consumer debt**Private consolidation loans Do not offer the same advantages(i.e., repayment options, deferments, etc.)as a federal consolidation loan Interest rate will be credit-based and likelyhigher than a federal consolidation loanCan I ever Re-consolidate? Generally, no You may only reconsolidate if you consolidate an existing Consolidation loan with another loan outside the Consolidation loan
20Factors to consider in consolidating+Bring together loans with multiple loan holder for convenience of one payment.+Lower loan payments by lengthening repayment period.+May be able to lock in a more favorable interest rate.May lose some or all of grace period.May lose certain borrower benefitsMay increase total cost of loan if you lengthen your repayment period, you will pay more interest in the long run.Loan DefermentA deferment is a period of time when payment on a loan is temporarily postponed.Interest paymentFederal government pays the interest during deferments for subsidized loans and for the underlying subsidized loans that were consolidated.Borrower is responsible for the interest for unsubsidized Stafford loans, GradPLUS loans, and PLUS loans and for the underlying unsubsidized loans that were consolidated
Types of DefermentEnrolled at least half-time at an approved postsecondary schoolStudy in an approved graduate fellowship program or an approved rehabilitation training program for the disabledUnable to find full-time employment (up to 3 years)Economic Hardship (up to 3 years)Engages in service listed under discharge/cancellation conditions (Perkins only)Active Military Duty, for loans first disbursed on/after July 1, 2001; while borrower is on active duty during a war or other military option, or national emergency (up to 3 years)www.studentloans.gov
ForbearanceA period of time during which the borrower is permitted to temporarily cease making payments or reduce the amount of the payments.
Borrower is liable for all interest that accrues on the loan. Contact your loan holder Some deferment types require an application
24Helpful Resourceswww.federalstudentaid.ed.gov/students.htmlwww.studentloans.govwww.nslds.ed.govwww.dl.ed.govwww.loanconsolidation.ed.govwww.finaid.orgwww.tgslc.org/borrowersStudent Financial Assistance OfficeG-1 Parker Hall573firstname.lastname@example.org