Transcript exit presenatation

Financial Aid Exit Counseling
2015 – 2016
P R ESENTED BY
BR A DL E Y HE N DRI X
F I N A N C I A L A I D O F F I C E , D E FA U LT P R E V E N T I O N C O O R D I N ATO R
Agenda
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Preparing for Repayment
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Rights & Responsibilities
Total Average Indebtedness
Exit Counseling and Repayment Plans
Public Service Loan Forgiveness Program (PSLF)
Loan Consolidation and Cancellation
Internship/Residency Forbearance Options?
Delinquency and Default
Keys to Successful Repayment
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Preparing For Repayment
√
Complete the Mandatory Exit Counseling
Exit Counseling Online
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Print a copy of your *NSLDS report
www.nslds.ed.gov
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Create an account with your loan servicers
List of Loan Servicers
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Create an account with SALT
www.saltmoney.org
√
Estimate and Review Repayment Options
Repayment Calculator
*NSLDS report does not include the following reports:
Title VII loans (Primary Care, LDS, HPSL, and Nursing) – These are serviced by ECSI
Private Alternative Education Loans
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Preparing
PreparingFor
ForRepayment
Repayment
PLEASE NOTE:
• If you do not choose a payment plan during grace period, you will be placed
in the standard plan.
• Can change your payment plan
• Can change your due date
• Can postpone payment with a deferment/forbearance
• Will pay more in interest with longer repayment periods
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Your Rights & Responsibilities
Your
YourRights
Rights
•Receive a copy of your signed MPN
•Receive a disclosure statement
•Receive a six-month grace period
•Prepay all or part of your loan without penalty
•Deferments & forbearance, if eligible
•Written notice if your loan is transferred
•Proof of discharge after repaying loan in full
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Your
Your
Responsibilities
Responsibilities
•Repay your loan(s)
•Make on-time monthly payments
•Read correspondence from loan servicer
•Notify loan servicer of changes within 10 days
• School and enrollment status
• Name, address, and telephone number
•Ask your loan servicer for help
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Exit Counseling
Requirement
Exit Counseling
Log onto www.studentloans.gov
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2015 Total Average Indebtedness
DISCIPLINE
2015 TOTAL AVERAGE
INDEBTEDNESS
DOCTOR OF DENTAL MEDICINE
$317,642
DOCTOR OF OPTOMETRY
$191,404
DOCTOR OF OSTEOPATHIC MEDICINE POMONA/LEBANON
$235,004/$254,254
DOCTOR OF PHARMACY
$232,611
DOCTOR OF PHYSICAL THERAPY - ENTRY
$162,175
DOCTOR OF PODIATRIC MEDICINE
$229,706
DOCTOR OF VETERINARY MEDICINE
$243,801
MASTER OF SCIENCE IN HEALTH SCIENCES
$56,382
MASTER OF SCIENCE IN MEDICAL SCIENCES
$43,213
MASTER OF SCIENCE IN PHARMACEUTICAL SCIENCES
$18,080
MASTER OF SCIENCE IN PHYSICIAN ASSISTANT STUDIES
$110,116
MID-CAREER POST-BACCALAUREATE DOCTOR OF PHARMACY
$170,445
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DISCIPLINE
2015 TOTAL AVERAGE
INDEBTEDNESS
ADN TO MS IN NURSING - AMBULATORY CARE
$58,935
ADN TO MS IN NURSING - FAMILY NURSE PRACTITIONER
$100,416
ADN TO MS IN NURSING - LEADERSHIP AND MANAGEMENT
$46,586
DOCTOR OF NURSING PRACTICE
$53,670
FAMILY NURSE PRACTITIONER
$40,986
MSN - CLINICAL NURSE LEADER
$143,038
MSN - FAMILY NURSE PRACTITIONER
$71,649
MSNE - AMBULATORY CARE
$135,564
MSNE - CLINICAL NURSE LEADER
$143,038
MSNE - FAMILY NURSE PRACTITIONER
$104,730
MSNE - LEADERSHIP AND MANAGEMENT
$142,420
MSN/FNP - DNP DUAL DEGREE PROGRAM - TRADITIONAL
$135,367
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Repayment Plans
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Income - Driven Repayment Plans
What is an income-driven repayment plan?
An income-driven repayment plan is a repayment plan that sets your monthly
student loan payment at an amount that is intended to be affordable based on
your income and family size. The U.S. Department of Education offers four incomedriven repayment plans: Revised Pay As You Earn Repayment Plan (REPAYE Plan),
Pay As You Earn Repayment Plan (PAYE Plan), Income-Based Repayment Plan (IBR
Plan), and Income-Contingent Repayment Plan (ICR Plan). Most federal student
loans are eligible for at least one income-driven repayment plan.
Reference: Income Driven Repayment Plans - Federal Student Aid
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Example
1. Student
◦ Single w/ no dependents
◦ Salary = $80,000 annually
◦ WesternU Average Loan Debt = $200,000
Repayment Type
Estimated Monthly Payment
Total Months
Standard
$2,343
120
Graduated
$1,357 - $4,072
120
Extended Fixed
$1,439
300
Extended Graduated
$1,200-@2,008
300
Income-Based
Repayment (IBR)
$781 - $2,343
300
IBR for New Borrowers
$521 - $1,463
240
Pay As You Earn
$521 - $1,463
240
Income-Contingent
(ICR)
$1,139 - $2,774
213
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Public Service Loan Forgiveness
Public Service Loan Forgiveness
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Loan Consolidation & Cancellation
LoanLoan
Consolidation
& Cancellation
Consolidation
• One or more federal student loans combined into one new loan.
• Fixed interest rate based on the weighted average of the interest
rates rounded up to the nearest 1/8 percent (capped at 8.25
percent).
• Repayment term can be extended to up to 30 years based on total
education debt.
• Repayment schedule is the standard plan but can be changed to
extended or graduated plan.
• As of July 1, 2010, the U.S. Department of Education (ED) is the
only lender of a Consolidation loan.
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Loan Consolidation
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Loans
Eligible
Loans
Eligiblefor
for Consolidation
Consolidation
•Federal Family Education Loan Program (FFELP)
– Subsidized and Unsubsidized Stafford loans
– PLUS loans
•William D. Ford Direct Loans Program (DL)
– Subsidized and Unsubsidized Direct Stafford loans
– Direct PLUS loans
•Other federal student loans
– Perkins loans
– Health Professions Student Loans (HPSL)
– Loans for Disadvantaged Students (LDS)
– Nursing Student Loans (NSL)
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LoanCancellation
Cancellation
Loan
•In extreme circumstances:
• Total and permanent disability
• Death
• Federal Loans are not dischargeable in bankruptcy
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Internship / Residency Forbearance Options?
Forbearance
Forbearance
•Temporary reduction or postponement of payments
•Not automatic
• You must apply and receive approval from servicer
•Primary reasons
• Poor health
• Internship/ Residency
• Financial hardship
•Interest will continue to accrue
•Contact your loan servicer for the best options available
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Delinquency & Default
Avoid
AvoidDelinquency
Delinquency&&Default
Default
•Pay on time
•A payment received one day late is considered delinquent.
•Delinquent payments are reported to the credit bureaus.
•Always call your school or servicer for help.
•Open a FREE account with SALT - www.saltmoney.org
•Open a FREE account with your Loan Servicer
◦ Loan Servicers
IMPORTANT NOTE: Beware of companies advertising consolidation debt relief who are not affiliated with
the Department of Education.
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Consequences
Consequencesof
ofDefault
Default
Full amount of loan is due
◦ Including collection costs, accelerated interest, court costs,
and attorney’s fees.
Subject to federal and state offsets
◦ Wages and tax refund may be garnished
Credit will be tarnished
Loss of deferment and forbearance options
Loss of eligibility for future financial aid
May lose eligibility for certain federal or state jobs
May lose professional license
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Keys to Successful Repayment
Keysto
toSuccessful
SuccessfulRepayment
Repayment
Keys
•Keep school and servicer informed about changes
•Keep copies of all documents in one place
•Open all mail
•The longer it takes to repay your loans, the more interest you will
pay
•Build good credit with timely payments
• Always ask for help
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Note: Interest Payments are tax deductible up to $2,500 for each tax filing year.
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Resources
Financing A Healthy Future
Financing a Healthy Future
Federal Student Aid
www.studentaid.ed.gov
Federal Student Aid Repayment Calculator
Federal Student Aid Repayment Calculator
Mandatory Exit Counseling, Loan Consolidation, StudentLoans.Gov
and application for Income Driven Plans
WesternU's Loan Forgiveness and Repayment
Database
Loan Forgiveness and Repayment Search
ECSI
ECSI
Financial Aid Staff and Contact Information
FAO Contact Information
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Federal Loan Servicers
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QUESTIONS