Compare private loans and federal loans Identify the specific terms of your private education loan Assess your financial situation Examine consequences of default Discuss steps to improve your financial situation

If you don’t have these documents, you can provide estimates on the exercises or fill in the information after the session.

Designed to benefit students Includes Direct student loans, PLUS loans, Consolidation loans Awarded by your school based on the FAFSA

Offered by banks and other financial institutions Vary in terms and benefits from bank to bank

Different repayment benefits Cosigner required Consolidation with federal student loans not an option No interest subsidy Lack of forgiveness provisions Not dischargeable

Explore obligations associated with your private loan Workbook page 3

Discussion questions: 1.Will I have enough financial aid to cover my education-related expenses? 2.Does my total financial aid exceed my total education-related expenses? 3.Do my non-education-related expenses exceed my supplemental income? Workbook page 5

Fill out the FAFSA Use federal aid first Make interest payments while in school Make loan payments while in school Factor your potential salary into borrowing decisions Use credit cards sparingly Graduate

Damaged relationship with cosigner Reduced credit score Difficulty getting a job Higher interest rates on other major purchases

Contact your school’s financial aid office or Take a look at TG’s private loans page at

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