1. 2014-2015

2. Direct Loan lent Federal money lent to students to help cover the cost of higher education. It is a type of financial aid that will eventually need to be repaid. https://studentaid.ed.gov/types /loans/subsidized-unsubsidized

3. Use of Your Loan Money  You may use your loan money only to pay for authorized educational expenses at the school that certified your loan eligibility.  Authorized educational expenses include:  Tuition  Books  Supplies  Transportation  Computer Expenses  Loan Fees  If you have any extra money left over after paying for educational expenses, deposit the money into a savings account or make interest payments. https://studentaid.ed.gov/types

4. Borrow Wisely Never borrow more than you can afford to repay Apply for as many scholarships as possible and accept grants (Money that does not have to be paid back.) Maximize your income and minimize your expenses Decline loans if you do not need them Strategize – consider major/goals Page 21

5. Capitalization The process of adding interest that has been accrued to the principal amount of the loan. Pages 2-3 Accrue The accumulation of interest on an unpaid loan over time.

6.  You must repay the full amount of your loans with interest even if:  You do not complete your program of study.  You cannot find employment.  If you do not pay the interest as it is charged on either type of loan, direct loans will capitalize on the unpaid principal amount of your loan. This can substantially increase the total amount you repay over the life of your loan. You Must Repay Your Loans Pages 13-15

7. Grace Period A six month period that begins the day after you graduate from your program or drop below 6 credits. This time should be used to prepare for repayment of your loan(s). Pages 2-3

8. FAFSA www.fafsa.gov DSLCC Priority Deadline is March 1 Verification If selected, do as soon as possible Loan Request Form www.dslcc.edu Master Promissory Note (MPN) www.studentloans.gov Entrance Counseling www.studentloans.gov In-Person Counseling/Group Session Page1 of Loan Request Form

9. Keep Your Loan Papers  Keep copies of all your loan papers in a safe place.  Many people will keep with their tax records. www.studentloans.gov

10. Master Promissory Note (MPN)  The MPN is a legal document you sign promising to repay your loan(s) and all accrued interest.  The MPN is found online at https://studentloans.gov https://studentloans.gov  The MPN needs to be completed each aid year.  Completed MPNs are available online for up to 10 years.  There is one MPN for Subsidized Loans and Unsubsidized Loans and a separate MPN for Direct PLUS Loans (for parent who is taking out a loan for a student). Page 3

11. Half-Time Enrollment  You must be enrolled and actively attending 6 credit hours (half time) or more to receive a Direct Loan.  This applies to summer loans too.  You do not have to enroll part-time in the summer in order to defer loan repayment IF you plan to come back and enroll at least part-time in the fall. Page 7

12. Subsidized Students take out for themselves Students repay Unsubsidized Students take out for themselves Students repay Direct Plus Parents take out for students Parents repay Page 4

13. Lender The financial institution which provides loans (Dept. of Ed). Pages 2-3

14. Subsidized Loan  Based on financial need  Must be enrolled and actively attending 6 or more credit hours (at least half time)  Interest will not accrue, and you do not have to make payments if enrolled at least half time.  No credit check required  6-month grace period after you drop below half time (no payment/interest does not accrue)  Interest Rate of 4.66%* * http://studentaid.gov Pages 4-5

15. Subsidized Direct Loan Limits  Limits Direct Subsidized Loan eligibility for first-time borrowers* effective July 1, 2013.  First-time borrowers* are no longer eligible for Direct Subsidized Loans once the borrower has received sub loans for a period of 150% of the length of the program of study  Maximum Eligibility Period examples: 1-yr cert. = 1.5 yrs of sub loan eligibility 2-yr degree = 3 yrs of sub loan eligibility 4-yr degree = 6 yrs of sub loan eligibility *also includes borrowers who have paid off previous loans Pages 8-11

16. Subsidized Direct Loan Limits …(continued) Loss of Interest Subsidy ▪ The student who is subject to the 150% limit can lose interest subsidy on all outstanding subsidized loans if:  There is no remaining eligibility period;  The student did not complete the program; and  The student continues enrollment. ▪ A loan which loses its subsidy is still a subsidized loan. ▪ A student may at some later point regain sub eligibility (e.g. by enrolling in a longer program), but a lost subsidy on a prior loan can never be regained. Pages 8-11

17. Subsidized Direct Loan Limits …(continued)  If subsidized eligibility is lost, the borrower is still eligible for Direct Unsubsidized loans.  If a student moves from a longer program of study (e.g. 2 yr. degree such as General Studies) to a shorter program of study (e.g. 1 yr. cert. such as Advanced Healthcare), a loss of subsidy can occur. Maximum Eligibility Period All Subsidized Usage Periods Remaining Eligibility Period Pages 8-11

18. Subsidized Direct Loan Limits …(continued)  E.g. – Jane Doe has completed 1 year of classes and is enrolled in General Studies. She took out a Subsidized Direct loan. She decides to be an LPN instead.  Jane has one semester to complete the LPN Program before losing her subsidy. 1.5 yrs. of sub loan eligibility (to complete 1 yr. cert.) 1 yr. of subsidy used (time from General Studies).5 yr. Subsidy Remaining Pages 8-11

19. Unsubsidized Loan  Not based on financial need  Must be enrolled and actively attending 6 or more credit hours (at least half time)  Interest accrues at all times  No payments are required while enrolled half time  No credit check required  6-month grace period after you drop below half time (no payment/interest does accrue)  Interest Rate of 4.66%* * http://studentaid.gov Pages 4-5

20. Direct Parent Plus Loans  For parents of dependent students  Student must be enrolled and actively attending 6 or more credits (at least half time)  Credit check required; if you have bad credit or no credit history, you can obtain a co- signer  If parent denied, student will receive independent loan amount  Interest accrues at all times  Repayment begins 60 days after the final loan is disbursed, but you may defer repayment while enrolled in at least 6 credit hours  Interest Rate of 7.21%  Student apply for subsidized or unsubsidized loan first Pages 4-5

21. Factors Affecting Loan Amounts The actual loan amount you are eligible to receive is determined by various factors such as:  Cost of attendance  Dependency status  Academic level  Expected Family Contribution (EFC)  Your remaining eligibility under the annual and aggregate loan limits Page 5

22. Annual Loan Limits Page 6

23. How to Verify/View Your Loan Amount(s) 1. Go to www.dslcc.edu.www.dslcc.edu 2. Click “Blackboard.” 3. Log in. 4. Click “Student Information System.” 5. Click “Student Center.” 6. Click “Financial Aid.” 7. Click “2015.” www.dslcc.edu

24. Disbursement The process of crediting your loan to your account to pay off any school charges. Pages 2-3

25. Loan Fees  The government charges a loan fee (also called an origination fee) on all loans.  The loan fee is a percentage of the amount you receive and is subtracted from each loan disbursement. (Usually a small amount)  The specific loan fee that you are charged will be included in a disclosure statement after the first disbursement of your loan. Page 3 and MPN

26. How Your Loans Will be Disbursed  You are able to receive half of your loan eligibility in the fall and the other half in the spring.  (If you don’t use all of your loan eligibility, you can use it in the summer semester. It works the same as the Pell Grant.)  Once the loan is disbursed, it pays for tuition, books etc., FIRST. Then, if there is any money left over, it will be sent to you in the form of a refund check.  If you get a refund for a subsidized loan AND a refund for an unsubsidized loan, they may be sent as separate checks.  You will receive an email when your loan is disbursed. Page 8

27. How to View Disbursement Dates  Go to www.dslcc.edu. www.dslcc.edu  Hover over “Quick Links.”  Click “Financial Aid.”  Click “Disbursement Dates for Financial Aid.” http://www.dslcc.edu/studentservi ces/financialaid/disbursement.shtm

28. Refund Check The remaining balance after school charges have been applied (Tuition, Books, etc.). Not everyone will get a refund check. Late classes = Late refund check Pages 2-3

29. Refund Check Timeframe Financial Aid (1-5 Business Days) -Verifies your award(s) -Verifies your attendance -Verifies level of enrollment -Forwards your information to the college’s Business Office Business Office (1-2 Business Days) -Applies funds to college account to pay for your charges. -Forwards your information to Richmond. Richmond & USPS (7-14 Business Days) -Mails refund checks. -Will post to “Account Inquiry” at this point. http://www.dslcc.edu/studentservi ces/financialaid/disbursement.shtm Hint, hint… This doesn’t just happen with loans. This happens with all other types of financial aid.

30. How To Check Your Refund Status Log Into Student Information System (SIS)  Go to www.dslcc.edu. www.dslcc.edu  Click “Blackboard.”  Click “SIS.”  Click “Student Center.”  Click “Account Inquiry.” Please Note:  Refund checks will not post until they have been disbursed and processed by the Business Office.  Once the funds post, your refund check should arrive within 7- 14 business days.  Make sure your address is up to date in SIS – this is the address that your check would be mailed to. www.dslcc.edu

31. Return to Title IV (R2T4)  If a student leaves the institution before completing a term, the financial aid office recalculates eligibility for Title IV funds.  Recalculation is based on the percentage of aid earned.  Student may need to return loan money if he/she withdraws or stops attending. http://www.dslcc.edu/studentservi ces/financialaid/dslcc_policy.shtml

32. Aggregate Loan Limits Aggregate Loan Limits for Direct Subsidized Loans & Unsubsidized Loans Dependent Undergraduate (except for students whose parents cannot borrow PLUS loans) $31,000 Independent Undergraduate (and for dependent students whose parents cannot borrow PLUS loans) $57,500 Page 6

33. Changes You Must Report It is your responsibility to contact your Direct Loan servicer if you: Stop attending school or drop below half-time enrollment Graduate Fail to enroll at least half-time for the loan period certified by your school Transfer to another school Change your name, address, phone number or email address Page 19

34. If You Drop Below Half-Time Enrollment  The six-month grace period will begin.  Talk to the servicer if you go into repayment.  Complete Exit Counseling (www.studentloans.gov or www.nslds.ed.gov)www.studentloans.gov www.nslds.ed.gov Page 7

35. Servicer A company that handles the billing and other services on your federal student loan. Pages 2-3

36. Repayment  Yes! You must repay the full amount of each Direct Loan you receive, plus interest.  Your Direct Loan servicer will notify you of the date your first payment is due and send you statements telling you how much interest has accrued on your loans and your options for paying that interest.  The repayment period for each Direct PLUS Loan that you receive begins 60 days after the final loan disbursement is made. There is no grace period for Direct PLUS Loans. However, repayment may be deferred if you, the parent, or the student is enrolled at least half time.  You must make payments on your loan even if you do not receive a bill or repayment notice.  You may prepay all or any part of the unpaid balance on your loans at any time. Pages 13-17

37. Consolidation  Applies to multiple federal education loans  Simplifies repayment (one monthly payment)  Check out the advantages and disadvantages  To learn more, visit http://loanconsolidation.ed.gov http://loanconsolidation.ed.gov Page 26

38. Standard Repayment Plan  Fixed monthly payments  Loan must be paid in full within 10 years from the date the loans entered repayment (not including periods of deferment or forbearance)  Payments must be at least $50 a month and will be more, if necessary, to repay the loans in the required time period  Contact your loan servicer for options about changing your repayment plan Page 14 & 16

39. Interest Rate Reduction for Automatic Withdrawal of Payments  Your bank will automatically deduct your monthly payment from your checking/savings account and send it to your loan servicer.  If you opt in for Automatic Withdrawals, it ensures that your payments will be made on time and you will receive an interest rate reduction of 0.25%.  Your Direct Loan servicer will include information about the Automatic Withdrawal option in your first bill. Page 15 Page 18

40. Up-Front Interest Rebate  You may receive an up-front interest rebate on your loan.  The rebate is equal to a percentage of the loan amount that you borrow.  In order to receive the rebate, you must make all of your first 12 required monthly payments on time. Page 18

41. Forbearance The ability 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. Deferment The postponement of a payment of a loan, during which interest does not accrue. Pages 2-3

42. Trouble Making Payments  Contact your Direct Loan Servicer ASAP to discuss options, such as: Changing repayment plans Deferment Forbearance Page 19

43. Trouble Making Payments… ( continued )  If your monthly payment is not received:  Your loan becomes delinquent  Late fees may be added  Delinquency will be reported to one or more national consumer agencies (credit bureaus)  If you stop making payments and don’t get a deferment or forbearance, your loan will go into default, which has serious consequences. Pages 19-20

44. Consequences If You Default  Default occurs when you are 270 days past due (delinquent) in making a payment on your loan(s). The consequences of default can be severe.  The entire unpaid balance of your loan and accrued interest becomes due and payable immediately.  You lose eligibility for deferment.  You lose eligibility for additional federal student financial aid.  Your account is assigned to a collection agency.  The default will be reported as delinquent to credit bureaus, ultimately damaging your credit rating. Pages 19-20

45. Consequences If You Default …(Continued)  The federal government can take all or part of your federal tax refund.  Late fees, additional interest, court costs, collection fees, attorney’s fees, and other costs incurred in collecting your loan will increase your loan debt.  Your employer (at the request of the federal government) can garnish part of your wages and send them to the federal government.  The federal government can take legal action against you. Pages 19-20

46. Conditions for Cancelling All or Part of Your Loan  Teacher Loan Forgiveness  Teach in a low-income school district  Public Service Loan Forgiveness  Employed in certain public service jobs  School-related discharges In certain cases, you may be able to have all or part of your loan cancelled because:  Your school closed before you completed your program.  Identity theft  You withdrew from school but the school didn’t pay a refund that it owed Pages 27-28

47. Conditions for Cancelling All or Part of Your Loan …Continued  Disability, bankruptcy, or death-related discharges  Totally and permanently disabled  Bankruptcy (if repaying the loan causes undue hardship)  Documentation of your death Pages 27-28

48. National Student Loan Data System  You can find information about all of your Direct Loans by accessing the Department’s National Student Loan Data System at www.nslds.ed.gov or by callingwww.nslds.ed.gov 1-800-999-8219.  You will need your Federal Student Aid PIN to access NSLDS. Page 31

49. Borrower’s Rights and Responsibilities  If you have questions about the borrower’s rights and responsibilities or the terms and conditions of your loan(s), you may contact Applicant Services.  U.S. Department of Education Attn: COD Applicant Services P.O. Box 9002 Niagara Falls, NY 14302 1-800-557-7394 Email: codsupport@acs-inc.com Page 29

50. How to Check Your Student Email 1. Go to www.dslcc.eduwww.dslcc.edu 2. Click “Blackboard.” 3. Log in. 4. Click your email address (ends with @email.vccs.edu) www.dslcc.edu Be sure to check constantly!!!

51. finaid@dslcc.edu

52. Picture References  Page 1 http://media.cagle.com/81/2013/06/27/133834_600.jpghttp://media.cagle.com/81/2013/06/27/133834_600.jpg  Page 2 http://cdn.meme.li/instances/300x300/32778948.jpghttp://cdn.meme.li/instances/300x300/32778948.jpg  Page 4 http://s2.quickmeme.com/img/57/571e92ae1ba4bfa57e13e6c314cfafa21f1d4976642cc323 4fbb5b4be6d35c3f.jpg http://s2.quickmeme.com/img/57/571e92ae1ba4bfa57e13e6c314cfafa21f1d4976642cc323 4fbb5b4be6d35c3f.jpg  Page 6 http://ct.fra.bz/ol/fz/sw/i49/5/3/14/fbz_819c080bf49255f94bc1d31deaabc551.jpghttp://ct.fra.bz/ol/fz/sw/i49/5/3/14/fbz_819c080bf49255f94bc1d31deaabc551.jpg  Page 7 http://d3fhkv6xpescls.cloudfront.net/blog/wp- content/uploads/2012/07/preparation.jpghttp://d3fhkv6xpescls.cloudfront.net/blog/wp- content/uploads/2012/07/preparation.jpg  Page 9 http://file.answcdn.com/answ- cld/image/upload/h_320,c_fill,g_face,q_60,f_jpg/v1/tk/view/answ- images/9/8/6/3/a/7/9863a758/a11b1a082fa6552998bd55b212c2dbcd023cc437.jpghttp://file.answcdn.com/answ- cld/image/upload/h_320,c_fill,g_face,q_60,f_jpg/v1/tk/view/answ- images/9/8/6/3/a/7/9863a758/a11b1a082fa6552998bd55b212c2dbcd023cc437.jpg  Page 13 https://encrypted- tbn2.gstatic.com/images?q=tbn:ANd9GcRpfQZpVcKOUK8PeTdnW9iKnZna18GjCUKSFHtuIAc 65sDuwTXCIAhttps://encrypted- tbn2.gstatic.com/images?q=tbn:ANd9GcRpfQZpVcKOUK8PeTdnW9iKnZna18GjCUKSFHtuIAc 65sDuwTXCIA  Page 33 https://encrypted- tbn3.gstatic.com/images?q=tbn:ANd9GcSV7FRlp2OHSKG3AuZ1PNCwQLFU59ehLsEUAJUF5b HdZ0jL4fZP5Ahttps://encrypted- tbn3.gstatic.com/images?q=tbn:ANd9GcSV7FRlp2OHSKG3AuZ1PNCwQLFU59ehLsEUAJUF5b HdZ0jL4fZP5A  Page 36 http://memeshappen.com/media/created/iej6ve.jpghttp://memeshappen.com/media/created/iej6ve.jpg  Page 37 http://www.nelnet.com/uploadedImages/Home_Content/Managing_Your_Student_Loans/l oan-consolidation.png http://www.nelnet.com/uploadedImages/Home_Content/Managing_Your_Student_Loans/l oan-consolidation.png  Page 38 https://www.tuition.io/student-loan-help/wp-content/uploads/2013/07/affordable- repayment-plans-for-federal-student-loans.jpghttps://www.tuition.io/student-loan-help/wp-content/uploads/2013/07/affordable- repayment-plans-for-federal-student-loans.jpg  Page 42 http://www.finaid.umich.edu/Portals/0/images/repaymentgraphic.jpghttp://www.finaid.umich.edu/Portals/0/images/repaymentgraphic.jpg  Page 44 https://www.tuition.io/blog/wp-content/uploads/2014/03/bigstock-Credit-Scrore- 3913122.jpghttps://www.tuition.io/blog/wp-content/uploads/2014/03/bigstock-Credit-Scrore- 3913122.jpg  Page 51 https://c14608526.ssl.cf2.rackcdn.com/07D6CBE4-05FB-4D00-87AC- 334EBE093769.jpghttps://c14608526.ssl.cf2.rackcdn.com/07D6CBE4-05FB-4D00-87AC- 334EBE093769.jpg