Transcript F.L.I.G.H.T. Financial Literacy for Graduate Health Students of Today The F.L.I.G.H.T. program is designed for University of Tennessee Health Science Center students to educate them.

F.L.I.G.H.T.
Financial Literacy for Graduate Health
Students of Today
The F.L.I.G.H.T. program is designed for University
of Tennessee Health Science Center students to
educate them for their journey by providing
financial literacy and debt management resources.
F.L.I.G.H.T. purpose is to equip each student with
the tools to handle unexpected events and plan
for the short or long-term goals in the
future....Take FLIGHT!
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The National Student Loan Data System
(NSLDS) is the U.S. Department of Education's
(ED's) central database for student aid. NSLDS
receives data from schools, guaranty
agencies, the Direct Loan program, and other
Department of ED programs. NSLDS Student
Access provides a centralized, integrated view
of Title IV loans and grants so that recipients
of Title IV Aid can access and inquire about
their Title IV loans and/or grant data.
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To obtain website information to establish an
online account or phone numbers for specific
Loan Servicers,
http://studentaid.ed.gov/repay-loans/understand/servicers
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Many Loan Servicers offer “Live Chat” on their
websites.
To Locate Information about Your Loans
http://www.nslds.ed.gov/nslds_SA/
Capitalizing interest means adding unpaid,
accumulated interest to the principal balance
of your loan. Capitalization increases the total
cost of your loan. If you choose to let your
interest capitalize, you repay more money in
total than if you pay the interest while you are
in school. Whichever option you choose, you
are responsible for paying the full amount of
all interest on the loan
Initial Loan Balance:
$120,000.00
Loan Interest Rate:
5.41%
Loan Term:
10 years
Minimum Payment:
$0.00
Deferment (Months):
54
Capitalization Frequency: At Repayment
Student leaves school owing $155, 636.00…
Initial Loan Balance:
Interest paid over 10 years:
Total Repaid in Repayment:
In-School Interest Paid:
Total Repayment:
$120,000.00
$35,636.00
$155.636.00
$29,214.00
$184,850.00
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Income-Based Repayment (IBR) is designed to reduce monthly
payments to assist with making your student loan debt
manageable. If you need to make lower monthly payments, this
plan may be for you. Interest rate is fixed.
The Standard Repayment plan saves you money over time because
your monthly payments may be slightly higher than payments
made under other plans, but you’ll pay off your loan in the
shortest time. Interest rate is fixed.
The Graduate Repayment plan - your monthly payments start out
low and increase every two years, for up to 10 years, interest rate
is fixed.
http://studentaid.ed.gov/repay-loans/understand/plans
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Under IBR, monthly payment is capped to be
affordable based on income and family size –
designed for a “partial financial hardship”
(PFH).
Monthly payments are adjusted each year
according to changes in your income and
family size – new application must be
submitted.
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With the standard plan, you'll pay a fixed amount
each month until your loans are paid in full. Your
monthly payments will be at least $50, and you'll
have up to 10 years to repay your loans.
Your monthly payment under the standard plan
may be higher than it would be under the other
plans because your loans will be repaid in the
shortest time.
For that reason, having a 10-year limit on
repayment, you may pay the least interest.
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Payments start out low and increase every two
years - repayment period will be up to (10)years.
As your income increase, so will your monthly
payments steadily over time - no single payment
under this plan will be more than three times
greater than any other payment.
Your monthly payment will never be less than the
amount of interest that accrues between
payments
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New borrower - no outstanding balance on a
Direct Loan or FFEL Program of federal loans on
or after Oct 1, 2007 OR if you had no
outstanding balance on a Direct Loan or FFEL
Program loan when you received a new Direct
Loan or FFEL Program loan on or after Oct. 1,
2007
Receive a disbursement of a Direct Loan
(Unsubsidized, Subsidize or Grad Plus) for
graduate or professional students on or after
Oct. 1, 2011
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Capitalization, under PAYE it is limited to 10% of the balance of
debt that went into repayment. So, if after the student graduate
they have 200,000 of debt that goes into repayment under PAYE,
no more than 20,000 will be allowed to capitalize. However,
interest is still accruing, it just will not capitalize.
20- Year Loan Forgiveness: If you repay under the Pay As
You Earn plan, any remaining balance will be forgiven
after 20 years of qualifying repayment.
10-Year Loan Forgiveness PSLF: On-time, full monthly
payments you make under Pay As You Earn (or certain
other repayment plans) while employed full-time in a
public service job will count toward the 120 monthly
payments that are required to receive loan forgiveness
through the Public Service Loan Forgiveness (PSLF)
Program.
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The PSLF Program is intended to encourage
individuals to enter and continue to work fulltime in public service jobs. Under this program,
borrowers may qualify for forgiveness of the
remaining balance of their Direct Loans after they
have made 120 qualifying payments (10 years)
on those loans while employed full time by
certain public service employers.
Complete - Employment Certification Form
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Under certain circumstances, you can receive a
deferment or forbearance that allows you to
temporarily postpone or reduce your federal student
loan payments. Postponing or reducing your payments
may help you avoid default.
During a deferment, you do not need to make
payments. What’s more, depending on the type of
loan you have, the federal government may pay the
interest on your loan during a period of deferment.
With forbearance, you may be able to stop making
payments or reduce your monthly payment for up to
12 months. Interest will continue to accrue on your
subsidized and unsubsidized loans (including all PLUS
loans).
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A Direct Consolidation Loan allows you to
consolidate (combine) multiple federal student
loans into one loan. The result is a single
monthly payment instead of multiple payments.
If you consolidate your loans during your grace
period, you will give up the remainder of your
grace period and begin repayment after your
Direct Consolidation Loan is disbursed (paid
out). Your first bill will be due approximately
two months after the Direct Consolidation Loan
is disbursed.
◦ One Lender and One Monthly Payment
One monthly payment due for student loans
◦ Flexible Repayment Options
Multiple repayment plans with various term
selections to repay their consolidation loan(s)
◦ Reduced Monthly Payments
A consolidation loan may ease the strain on a
borrower's budget by lowering the borrower's overall
monthly payment.
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How Do I Apply
◦ Online Web Application - Apply online.
www.loanconsolidation.ed.gov
◦ Express Phone Application - 1-800-557-7392. Apply over
the phone if you have all Direct Loans.
◦ Paper Application
 Download a paper copy of the application and promissory note
- including the complete contents of the application package.
◦ OR
 Request an application package be mailed to you:
 Phone at 1-800-557-7392 8AM to 8PM (EST)
 E-mail at [email protected]
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Equifax
www.equifax.com
800-685-1111
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Experian
www.experian.com
888-397-3742
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Transunion
www.transunion.com
800-888-4213
**Free credit report authorized by the Federal Trade
Commission: www.annualcreditreport.com
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Payment history – 35%
(Accounts paid on time)
Amount owed – 30 %
(# of accounts w/balances)
Length of credit history – 15%
(Larger the BETTER)
New Credit – 10%
Types of credit used – 10%
(Variety is BETTER)
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Financial Aid Literacy & Debt Management
Website:
http://www.uthsc.edu/finaid/literacy/
Facebook Page:
UTHSC Financial Aid Literacy & Debt
Management
Self-Enrollment Banner Course:
Financial Aid Literacy & Debt
Management
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Financial Aid Literacy & Debt Management
Website:
http://www.uthsc.edu/finaid/literacy/
Facebook Page:
UTHSC Financial Aid Literacy & Debt
Management
Self-Enrollment Banner Course:
Financial Aid Literacy & Debt
Management
Ms. Janice G. Maddox, MBA
Financial Aid Literacy Coordinator
Financial Aid Office
(901) 448-1601
[email protected]
Janice.maddox3 - Skype
Answers