Transcript Loan Workshop 2015

Federal Student Loan Workshop
New Student Orientation 2015
Enrollment Services Student Support Center
103 Wilder Tower
Memphis, TN 38152
Student Financial Aid Office
Phone: (901) 678-4825
Fax: (901) 678-3590
Website: www.memphis.edu/financialaid
E-mail: [email protected]
Financial Aid Process
FAFSA must be
completed online
www.fafsa.gov
Log on to your
my.memphis.edu account
Priority deadline
Submit any requested
documents/requirements
listed with red flags
March 1
Aid is processed for
2 semesters –
Fall and Spring
Financial Aid Process
Log on to your
my.memphis.edu
account to review your
award offers
Financial Aid Office
forwards funds to the
Bursar’s Office to pay
tuition/fees
Accept/Accept Partial/
Decline
Check TigerXpress
Fee Payment Deadline:
August 21, 2015
Excess aid will be
refunded by the
Bursar’s Office via
eRefunds or paper
check. Otherwise, pay
the balance.
Who Qualifies for Federal Student Loans?
•
•
•
•
•
Student who completes the FAFSA
U.S. citizen or an eligible non-citizen (permanent resident)
Degree-seeking student
Enrolled in at least half time (6 hours)
Making Satisfactory Academic Progress
What You Should Know About Student Loans:
They Must Be Paid Back!
Type of
Loan
Student
is the borrower
Parent
is the borrower
Need
Based
Required
Enrollment
Interest
Rate
Interest
Accrual
Grace
Period
Interest free
while in
school
6 months
Subsidized
Loan
Yes
At least six
hours
4.29%*
Unsubsidized
Loan
No
At least six
hours
4.29%*
Parent Plus
for UG
Students
*Apply via
studentloans.gov
and undergo a
credit check
No
At least six
hours
6.84%*
Not Interest
free while in
school
Not Interest
free while in
school
6 months
NA
*The parent can
apply for in-school
deferment
How Much Can Students Borrow?
Dependent Loan Amount
Subsidized or
Unsubsidized
Additional
Unsubsidized
Yearly
Totals
Freshman 1-29 hrs
3,500
2,000
5,500
Sophomore 30-59 hrs
4,500
2,000
6,500
Junior 60-89 hrs
5,500
2,000
7,500
Senior 90+ hrs
5,500
2,000
7,500
TOTAL
19,000
8,000
27,000
Grade level
(earned hours)
Lifetime limit: Dependent Student = $31,000
You are responsible for monitoring how much you’ve borrowed. Keep up with your
federal loans at the National Student Loan Data System at http://www.nslds.ed.gov
Parent Loan for Undergraduate Students (PLUS)
•
•
•
•
•
Next option if additional funds are needed
Parent is the borrower
Apply on-line at www.studentloans.gov
A credit check is required
If approved, parent must complete a Master
Promissory Note (MPN) at same website
• Parent can request in-school deferment
Loan Repayment Examples
Total Borrowed
$15,000
$40,000
Monthly Payment
$173
$460
Total Owed/Paid
$20,714
$55,239
This example is based on a standard repayment plan for undergraduate or graduate borrowers at a 6.8%
interest rate with 120 monthly payments. (Source: studentaid.ed.gov)
•
•
•
You are NOT required to take out the maximum amount of loans
Visit www.nslds.ed.gov to monitor your loans
Stafford loans have variable interest rates, but they are capped at 8.25% (changes
every July 1st)
Budget Example #1
(Off-Campus Student)
Semester Estimate
Costs
Awards
Tuition
Dining Dollars
$4,482
$ 300
Total
$4,782
HOPE
Pell Grant
Loan
Total
$1,750
$2,887
$2,750
$7,387
Balance Refunded: $2,605
(Do you need the loan? What about a reduced amount?)
Budget Example #2
(On-Campus Student)
Semester Estimate
Costs
Tuition
$4,482
Dining Dollars $ 300
Room/Board
$4,000
Total:
$8,782
Balance Owed:
Awards
HOPE
$1,750
Pell Grant $2,887
Loan
$2,750
Total:
$7,387
$1,395
(Consider the Installment Payment Plan; otherwise, next option is the PLUS)
Next Steps?
• Work on a budget.
– Do you really need a loan and/or a PLUS?
– Is the Installment Payment Plan an option? Check Bursar’s Office
website for details.
• Review loan amounts on your myMemphis account; accept
amount needed.
• Complete the Master Promissory Note (MPN) and the
Entrance Counseling at www.studentloans.gov.
• Sign up for eRefunds (under TigerXpress) if you expect a
refund. (The Bursar’s Office is responsible for eRefunds.)
Checking for Red Flags on myMemphis
Financial Aid
Requirements
Red flag –
incomplete
Green check
mark – item
received/
completed
Financial Aid
Awards
Click Financial
Aid Awards
Link
Proxy Access
• Students can log in to myMemphis to give
parent/guardian authorization to see selected
Financial Aid information
• Proxy will be emailed to set up access
• Student will confirm what they want Proxy to
be able to view
FA/Bursar Satellite Location at 12pm
Enrollment Services Student Support Center
103 Wilder Tower, Memphis, TN 38152