LOAN REPAYMENT STRATEGIES Planning for Student Loan Repayment Module 2 Tulane University Jeffrey Hanson Education Services

2 Develop your “Action Plan” Don’t leave it to “chance” – create a strategic plan to repay your “educational mortgage”

Your Action Plan 4 Steps 1.Take stock of your loan portfolio 2.Determine when repayment begins 3.Pick your repayment plan 4.Evaluate if “Consolidation” is beneficial Remember, you must repay all that you owe! 3

What do you need to know? For each loan in your portfolio:  Type of loan  Interest rate (and when accrued interest capitalizes)  Amount owed  Who to repay (and how to contact them)  When repayment begins/resumes  Current status of each loan  Repayment options 4

Payment relief is available! Important “safety nets”  Postpone repayment temporarily using:  Deferment  Forbearance – also could temporarily reduce your monthly payments  Adjust your monthly payment:  Income-driven repayment plans (e.g., PAYE, IBR) provide opportunity to reduce your monthly payment when income decreases Contact your loan servicer for more information and to apply 5

Loan Repayment “Top Ten” Vocabulary List  Grace  FFEL  Direct  Servicer  NSLDS  Standard  Extended  IBR and PAYE  Consolidation  Prepayment 6 Make sure you understand these terms!

For more information …  Contact your loan servicer(s)  Online resources:  Federal student loans: StudentAid.gov  Federal loan repayment: StudentLoans.gov  Federal Direct Consolidation Loans: StudentLoans.gov  National Student Loan Data System: NSLDS.ed.gov 7

Opportunities to learn more …  Understanding the Unique Nature of Federal Student Loans  Exploring the Student Loan Repayment Plans  Understanding the Income- Driven Repayment Plans  Estimating Your Monthly Student Loan Payments  Taking Stock of Your Student Loan Portfolio  Developing Your Student Loan Repayment Timeline  Choosing Your Student Loan Payment Plan  Understanding Student Loan Consolidation  Public Service Loan Forgiveness 8 Check out all the loan repayment modules:

BE STRATEGIC: Take Charge of Loan Repayment! Jeffrey Hanson Education Services Tulane University