Graduate Student Exit Interview Northwestern University
Anticipated permanent address: enter the address where you would like your first bill sent. This address can always be updated on the lender website. Personal references: friends or relatives living at different addresses in the U.S.A. Parent or nearest relative (other than your spouse) If you have a Perkins loan, please sign the original repayment schedule. Last day of actual attendance: –Separation Date June 13, 2008 All forms will be collected before the session. If you do not have all the information necessary, you can the information to Please complete and sign the Personal Data Sheet
Agenda n Loan Repayment Handbook n Federal Stafford Loans n Federal GradPLUS Loan n Repayment Plans n Federal Perkins Loan n Cancellations n Deferments n NU Private Loan n Forbearance n Credit/Default
Federal Stafford Loans Loans disbursed before July 1, 2006 have variable interest rates subject to change every July 1 st. Loans disbursed after July 1, 2006 have a fixed interest rate of 6.8%. 6 month grace period, ends December 13, 2008 Subsidized Stafford Loan will accrue interest after the 6 month grace period when repayment begins. Unsubsidized Stafford Loan has accrued interest as funds were disbursed. Unpaid accrued interest will capitalize at the end of the 6 month grace period. 10 year repayment term Purple Handbook Pg 5
Federal GradPLUS Loans Loans have a fixed interest rate of 8.5%. Interest accrues as funds are disbursed. Unpaid interest will capitalize when repayment begins. Repayment begins within 60 days of the final loan disbursement for the year (no grace period). 10 year repayment term Purple Handbook Pg 6
Repayment Plans Standard Repayment –Ten year maximum repayment period –Fixed Schedule of monthly payments ($50 minimum) Graduated Repayment –Starts with smaller monthly payments that increase gradually over time Income-Sensitive Repayment –Payment will be the greater of your monthly interest amount or 4 percent of your gross monthly income –Eligibility and payment amount verified annually Extended Repayment –Available to new borrowers on or after October 7, 1998, who have a minimum balance of $30,000 in loans –Payment amounts can be either fixed annually or graduated –Maximum repayment term is 25 years Longer repayment term = more interest overall No Penalty for Prepayment
Perkins Loans Fixed interest rate of 5% 10 Year standard repayment term 9 month grace period with 0% interest ends March 13, month post-deferment grace period Cancellation available in certain circumstances Northwestern is the holder of this loan Purple Handbook Pg 9
Cancellations Perkins loans may receive full or partial cancellations depending on employment or service: Teaching in certain school districts Full time special ed teacher Full time teacher of math, science, foreign language and bilingual education Medical Technician, Health Care Provider Peace Corps, Teach for America Full time law enforcement, corrections officer. Must be in the criminal division Purple Hand book Pg 12
Deferments (Federal Loans only) n Deferment allows you to postpone payments for several reasons including: n Returning to school –deferments are unlimited n Unemployment and Economic Hardship –deferments available up to 36 months Subsidized Stafford and Perkins loans do not accrue interest during periods of deferment. Unsubsidized Stafford and PLUS loans do accrue interest during periods of deferment. Unpaid interest is capitalized at the end of the deferment period. Keep full repayment term of loan Purple Handbook Pg 7, 8, 10, 11
NU Loan Recommended Optional Interest rates are variable and change every Sept. 1st 3 month grace period ends September 13, 2008 Interest accrues from date of first disbursement. Unpaid interest will be capitalized at the end of the 3 month grace period. 10 year repayment term NU Loans are eligible for forbearance only NU Loans are private loans and cannot be included in a Federal Consolidation Loan. Purple Handbook Pg 13
What is forbearance? n Forbearance is an agreement with your lender to postpone payments when you are having financial difficulty and do not qualify for a deferment. n Documentation is required to verify your income and student loan debt. 6 month intervals of forbearance for a period up to 3 years. Interest will continue to accrue during the period of the forbearance. Unpaid interest will be capitalized at the end of the forbearance period. Higher monthly payments once forbearance ends on some private loans due to shortened repayment term.
Your Credit n All of your federal loans are reported to at least one credit bureau. n Factors reported –Timeliness of your payment –Non-payment –Outstanding balance n Credit Score n Free annual credit reports are available at: Purple Handbook Pg 4
Default Consequences n Your academic records will be placed on hold. n You may be liable for all collection costs. n You may be subject to Administrative Wage Garnishment. n You may be sued with court costs and legal fees added to your balance. Purple Handbook Pg 17 n Your income tax refund may be withheld. n Your credit rating and ability to borrow will be seriously damaged. n You may lose future eligibility for financial aid and student loans. n Your professional license could be denied or revoked. n You may be denied certain jobs.
My Responsibilities KEEP IN TOUCH WITH YOUR LENDERS/ SERVICERS Notify lenders/servicers of name and address changes. Make payments even if you have not completed the program Make payments even if you are unable to obtain employment upon completion of your program. Make payments even if a billing statement is not received Contact lender/servicer BEFORE you miss a payment if unable to make payments for ANY reason.
Additional Information Access information about federal loans; outstanding balances, disbursements, loan status, and loanholder by checking with the National Student Loan Data System (NSLDS). –www.nslds.ed.gov For mediation in a dispute with your lender/servicer, contact the FSA Ombudsman. – Purple Handbook Pg 24
Monthly Loan Payment Estimate and Other Calculators or
Student Loan Office For students with Perkins and NU Loans You can check your account status, update your address, download forms or pay online at: Student Loan Office 555 Clark Street, 3 rd Floor Evanston, IL Purple Handbook Pg 20, 22
Questions ? For Additional Info One-on-one Exit Interviews Contact: Marion Feinberg/Colleen Delaney Student Financial Services Counselor