1. Student Loan Exit Session

2. Please complete and sign the Personal Data Sheet All forms will be collected at the end of this session. If you do not have all the information necessary you can email the information to: studentloans@northwestern.edu

3. Agenda n Loan Repayment Handbook n Credit n Stafford Loans n Perkins Loan n Cancellation n Consolidation n NU Private Loans n Default

4. 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

5. Loan Repayment Summary

6. Federal Stafford Loans Interest rates are variable and are subject to change every July 1 st 6 month grace period Subsidized Stafford loan will accrue interest after the 6 month grace period Unsubsidized Stafford loan has accrued interest since initial disbursement Accrued interest will capitalize at the end of the 6 month grace period 10 Year term

7. Perkins Loans Fixed interest rate of 5% 10 Year term 9 month grace period with 0% interest Deferments are available Forbearance available up to 36 months Cancellation available in certain circumstances Northwestern is the holder of this loan

8. Cancellations Perkins loans are the only loans that can 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

9. Repayment Schedules Standard Repayment –Ten year maximum –Fixed Schedule of monthly payments –Minimum $50 monthly payment Graduated Repayment –Monthly schedule starts with small payments that increase gradually over time –You will pay a higher total interest Extended Repayment Income-Sensitive Repayment

10. Approximate Monthly Payment (using maximum interest of 8.25% over 10 years) Amount BorrowedMonthly Payment&Interest Total Principle and Interest $5,000$61$7,359 $15,000$184$22,077 $25,000$307$36,796 $40,000$491$58,873 $65,000$797$95,669 $90,000$1,104$132,465

11. Payment Estimate and Other Calculators www.mapping-your-future.org/features/loancalc.htm www.salliemae.com

12. To Obtain Additional Information of Your Loans Access information about Federal Loans, outstanding balances, disbursements, loan status, and holder by checking with the National Student Loan Data System (NSLDS) www.nslds.ed.gov

13. Consolidation Consolidation allows you to: Combine all your eligible federal education loans into a new loan with a single payment Lengthen the payback period up to 30 years and reduce your monthly payment Stafford and Perkins loans are eligible for consolidation. Do not consolidate your Perkins loan if you qualify for full or partial cancellation

14. When can borrowers consolidate? Anytime during the post-school, six month grace period Anytime during repayment During a period of deferment or forbearance In-school status

15. Advantages and Disadvantages of Loan Consolidation Advantages –Possible lower interest rate –May choose to lower the monthly payment by extending the term (up to 30 years depending on size of loan –Single Payment to one lender Disadvantages –In many cases a loss of borrower benefits or incentives earned on the Stafford Loans –Loss of some deferment benefits –In some cases a loss of the grace period –In some cases if the term is extended you will pay more interest

16. What should I consider before I make the decisions to Consolidate my Perkins Loan? Perkins loans have a 9 month grace period. If you consolidate your other loans before their 6 month grace period expires, you can add the Perkins within 180 days of the consolidation Loss of interest subsidy during periods of deferment (Subsidized Stafford loans do not lose interest subsidy on that portion of the loan during periods of deferment) Consider the impact of the Perkins on the interest rate for the Consolidation Loan since it is a weighted average Possible loss of eligibility for cancellations/loan forgiveness

17. What to look for when choosing a Consolidation Lender Make sure it’s a FEDERAL consolidation program If all of the borrowers loans are currently held by one lender, they must consolidate through that lender unless they do not offer a consolidation program What are the repayment incentives, if any? What payment options do I have?Online?Phone? What kind of customer service will I get? Are late fees charged for delinquent payments? If so, how much?

18. NU Loan Formerly known as the Parent/Student loan Interest rates are variable and change every Sept. 1st 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 Cannot be consolidated

19. What can I do if I am not able to make payments? n There are times when you might have trouble making your loan payments. To help you through difficult financial times, deferments and forbearances are available.

20. Deferments Stafford and Perkins 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 loans do not accrue interest during periods of deferment. Unsubsidized Stafford loans accrue interest and interest is capitalized at the end of the deferment period if it is not paid. Keep full term of loan

21. Forbearance All Student Loans n 6 month intervals for a period up to 3 years. n Receiving forbearance results in higher payments once forbearance ends. n Interest will continue to accrue and will be capitalized if eligible at the end of the forbearance period if it is not paid. n Term is lost

22. Default Consequences n Your academic records will be placed on hold. n You may have to pay additional collection costs after your loan is assigned to a private collection agency for collection. n You may be subject to Administrative Wage Garnishment. n You may be sued with court costs and legal fees added to your balance. 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.

23. My Responsibilities KEEP IN TOUCH WITH YOUR LENDERS/ SERVICER Notify lender of change in demographic information or if unable to make payments for ANY reason Make payments even if you have not completed the program Make payments even if you are unable to obtain employment upon completion Make payments even if dissatisfied with the quality of the school’s programs and services Make payments even is a billing statement is not received

24. Student Loan Office For students with Perkins and NU Loans We have outsourced our billing to Campus Partners in March On their website, http://mycampusloan.com you can check your account status and pay online

25. Good luck in all your future endeavors!