Federal Student Loan Exit Counseling Roanoke College Financial Aid

Why do I need to know this stuff? You need to know this information because you have received a Federal Stafford Loan, a Federal Perkins Loan, an alternative loan and/or RC Institutional loan through Roanoke College. The Federal Government requires that the school conducts “Exit Counseling” with the student (borrower). Also, Roanoke College is audited yearly to make sure that we are in compliance with the Federal Regulations. The loan is in YOUR name and you need to be aware of your rights and responsibilities as a borrower. These loans are reported to all three credit bureaus and can have a positive or negative impact on your credit as well as the co-signer’s credit history.

Loan History Loan Types: (Reflects only loans that you have taken out while at Roanoke College) Federal PLUS Loan This is a loan that your parent took out in their name. Repayment should have already begun and will continue for up to 10 years. Federal Subsidized Stafford Loan Government paid interest while you were in school. Interest will continue to be paid for the first six months after you leave school and during deferments Federal Unsubsidized Stafford Loan Your loan account has accrued interest since your first disbursement. Either you have been paying the interest or the interest has been capitalized while in school.

Loan History Loan Types: Federal Perkins Loans No interest was charged while you were in school. Interest will not begin to be charged until 9 months after you leave school. Roanoke College Loan No interest was charged while you were in school. Interest will not begin to be charged until 6 months after you leave school. Alternative Loan Could have been taken out from a variety of lenders (i.e. GATE, Sallie Mae, Citibank, TERI, Key Bank, Chase). Repayment terms and interest rate may vary. On most of these loans, however, interest has accrued since the 1st disbursement was made to RC.

Lender Contact: Federal Stafford Loan Lender Name should be listed on your loan history. Many lenders service out collection of these loans Access and use your federal PIN for current loan contact information and phone numbers. Federal Perkins Loan and Roanoke College Loan These funds were disbursed by Roanoke College. Serviced by Campus Partners at (800) Please contact Campus Partners or Paige Wygal, (540) , for inquiries, name and/or address changes, etc. Alternative Loans Refer to your records for lender name and contact information Loan History

Interest Rates: Federal Stafford Loans When was it disbursed? After 07/01/06 – 6.8% fixed rate Prior to 07/01/06 – Variable (Changes every July 1st but will never exceed 8.25%) During School, for six months after you leave school, and during deferments - based on 91 Day Treasury Bill + 1.7% When in repayment or forbearance, the rate increases to the 91-day T-Bill + 2.3% Federal Perkins Loan – Fixed 5% Roanoke College Loan – Fixed 8% Alternative Loans – Variable depending on lender Loan History The Princeton Review ranks Roanoke as one of the “best in the Southeast.”

Repayment Schedules When does repayment technically begin? Either upon graduation, when the student leaves school or when they drop below half-time enrollment status. When do I have to start making payments? Stafford and RC Loans – have six month grace period Perkins - nine month grace period How long will I have to repay these loans? Depends on amount borrowed: No more than 10 years to repay for PLUS, Stafford and Perkins No more than 5 years for RC Loan. Independent studies provide students with a practical application of their particular majors.

When will I be billed? Federal Stafford and RC Loans will be billed monthly (unless specified differently) Perkins Loan will be billed quarterly. Can you give me an estimate of my monthly payment? Federal Stafford Loans Use the “Student Loan Repayment Chart” in the “Goodbye” brochure Calculate your estimated interest paid, anticipated monthly payments and estimated total payments May also use any loan repayment calculator online (example: Roanoke College/Perkins Loans Refer to “Student Loan Repayment Schedule and Disclosure Statement in your packet Repayment Schedules

What options do I have in regards to repayment? Standard Repayment Minimum monthly payment depends on debt. Automatically used. Even payments. Graduated Repayment Payments start small then increase over time. Helpful if you don’t have a job right after graduation. Income Sensitive Repayment Payment is based on a percentage of your gross monthly income. One of the best places you can learn firsthand is in the classroom

Repayment Schedules Extended Repayment If you borrowed more than $30,000 in FFELP loans on or after 10/07/98 this may be an option for you. Allows you to stretch out your payments for up to 25 years using a fixed or graduated repayment amount. Can I change repayment schedules at any point? Contact your lender to discuss. Can I prepay my loan? Yes. No penalties assessed. Contact your lender to find out where to send payments to. Roanoke Students participate in the “R” House project and learn firsthand what it feels like to give back to the community

Federal Loan Consolidation What is it? A new loan that allows you to combine different types of federal education loans into one monthly payment. Roanoke College & Alternative Loans can not be consolidated. Is it required? No! Not for everyone, you need to research! Repayment term is based on the total amount you owe; will not exceed 30 years. Interest rate? Weighted average interest rate of the loans you consolidate Rounded up to the nearest 1/8 of 1%, or 8.25%, whichever is less. Borrower benefits vary among different lenders

Federal Loan Consolidation New loans disbursed on or after 07/01/06 have fixed rates already! Stretching the payments out over a longer period of time means you’ll pay more in interest and in total repayment costs. Your Stafford lender may offer better borrower benefits than the consolidation lender. Once you consolidation, these benefits may go away. You can usually only consolidate once. If you are a “new borrower” with $30,000+ in loan debt, you already have an Extended Repayment option. NO GRACE PERIOD! For Perkins Loan Borrowers: You will lose cancellation benefits. You get a lower payment. You get a fixed interest rate. You may qualify for attractive borrower benefits. The Pros: The Cons:

Options for payment if you are having difficulty Deferment Allows you to postpone your payments for a specified period of time based upon authorized reasons. Must contact lender and provide documentation of eligibility. Graduate School Unemployment Temporary/Permanent Total Disability Economic Hardship More Options available For Perkins and RC Loans, deferment forms are to be filled out each semester. Visit the to download form.)

Forbearance Allows you to temporarily postpone repayment. Interest always accrues on your loan regardless of whether you have a Subsidized, Unsubsidized or Perkins Loan. Not available for RC Loan. Contact your lender or servicer to apply. May need to provide written proof of your status. Examples of situations for which you may be entitled to a forbearance: Your debt exceeds monthly income. Serving an internship or residency period and deferment is not available. Options for payment if you are having difficulty

Consequences of Default You may be reported to the National Credit Bureaus Damages credit rating Compromises your ability to obtain financing for future purchases (car, house, credit card, etc.). Legal action can be taken against you. Lose your Federal income tax refund. Wages can be garnished. Balance of your loan can increase, 50% of the loan balance, due to collection fees being added on. Lose right to deferments or forbearance. Lose eligibility for future federal financial aid.

Helpful Repayment Tips to Avoid Default Keep copies of all loan documentation and repayment information. Do not default on your loans. If you are having problems making payments, contact your lender to explore another repayment schedule, deferment or forbearance. Establish a budget and/or financial plan. Keep in touch with your lender/servicer. If you move, make sure to provide your lender with your new address. The lender needs to be able to send you bills and contact you regarding your loans. Perkins and/or R C loan borrowers, you will need to notify Campus Partners at (800) or Paige Wygal, Federal Programs Office, at (540)

Under what circumstances could my obligation to repay my loans be reduced or eliminated? You die or become totally and permanently disabled. You serve as a full-time child care provider in a low-income community. You teach certain subjects at a Title I school. Your loan was falsely certified due to identify theft. Your school closed before you could complete your program. Your school owes your lender a refund, forged your signature on a promissory note, or certified your loan even though you didn't have the ability to benefit from the coursework. You file for bankruptcy. (This cancellation is rare and occurs only if a bankruptcy court rules that repayment would cause undue hardship.) Discharging Your Student Loan

How can I protect myself from Identity theft? Guard your Social Security number Monitor your credit report. Shred all old bank and credit statements and "junk mail" credit card offers before trashing them. Remove your name from the marketing lists of the three credit reporting bureaus to reduce the number of pre-approved credit offers you receive. Add your name to the name-deletion lists of the Direct Marketing Association's Mail Preference Service and Telephone Preference Service used by banks and other marketers. Do not carry extra credit cards or other important identity documents except when needed. Place the contents of your wallet on a photocopy machine. Copy both sides of your license and credit cards so you have all the account numbers, expiration dates and phone numbers if your wallet or purse is stolen. 14 tips to avoid identity theft By Frank W. Abagnale Bankrate.comFrank W. Abagnale

Do not mail bill payments and checks from home. Do not print your Social Security number on your checks. Order your Social Security Earnings and Benefits statement once a year to check for fraud. Examine the charges on your credit card statements before paying them. Cancel unused credit card accounts. Never give your credit card number or personal information over the phone unless you have initiated the call and trust that business. Subscribe to a credit report monitoring service that will notify you whenever someone applies for credit in your name. Identity theft again tops the Federal Trade Commision's list of consumer complaints. Frank W. Abagnale, a reformed thief, is now a respected authority on identity theft and other forms of fraud. His book, "Catch Me If You Can," which details his criminal escapades, was made into a feature film by Steven Spielberg and stars Leonardo DiCaprio as Abagnale. Frank Abagnale wrote this commentary for Bankrate.com.Catch Me If You Can