Loan Exit Counseling Facts & Tips

AGENDA What types of loans do I have? Where can I find my loans and who is my loan servicer? What are my Federal Direct Loan repayment options? How do I complete Exit Counseling for my Loans?

Common Terms

Grace Period A six-month period after you graduate, leave school, or drop below half-time enrollment during which you are not required to make payments on subsidized and unsubsidized loans. The repayment period begins at the end of the grace period.

Deferment A period in which repayment of the principal balance is temporarily postponed if you meet certain requirements. Forbearance Allows you to postpone or reduce your monthly payment amount for a limited time You are responsible for paying the interest that accrues during the forbearance on all loan types, including subsidized loans.

Default Failure to repay a loan according to the terms agreed to in the promissory note. You will be in default if you have not made a payment in more than 270 days. You may experience serious legal consequences if you default.

Consolidation May help make repayment more manageable by combining several federal loans into one monthly payment at one fixed interest rate.

Cancellation/Forgiveness Check out for loan forgiveness options like: Teacher Loan Forgiveness Program Public Service Loan Forgiveness Others Your loan servicer should also be able to provide information.

Loan Types 1.Federal Direct Loans: Subsidized, Unsubsidized, Parent PLUS, and Graduate PLUS 2.Perkins Loans 3.Institutional Loans 4.Private Loans

Where Can I Locate My Federal Loans? All federal loans (subsidized, unsubsidized, PLUS and Perkins) can be located at NSLDS: National Student Loan Data System. –Tells you who is servicing your loans –Tells you when repayment begins –Tells you your interest rate –Tells you what payment plan you are on

Where Can I Locate My Institutional Loans? Institutional Loans through Valparaiso University can be located with University Accounting Services (third party Valpo uses to service your loans) – –Phone:

Where Can I Locate My Private Loans? You will need to know who you borrowed private loans from and contact them regarding repayment options. Your private loans are included on the cumulative loan report found in your exit packet.

What Are My Repayment Options for Federal Direct Loans? Standard (10 years) Graduated (10 years) Graduated/Extended Extended (up to 25 years) Income Contingent (up to 25 years) Income Based Repayment (up to 25 years)* Pay as You Earn (up to 20 years)

Borrower Case Study for Non-Income- Driven Repayment Plans Amount borrowed: $35,449 StandardGraduatedExtended Fixed Extended Graduated Initial Payment $371$209$201$139 Final Payment $371$627$201$336 Time in Repayment 10 years 25 years Total Paid$44,498$46,805$60,325$65,938

Borrower Case Study for Income- Driven Repayment Plans Single, family of one AGI: $35,000 Amount borrowed: $35,449 Pay as EarnIBRICR Initial Payment$146$219$265 Final Payment$371 $329 Time in Repayment 18 years and 3 months 13 years13.5 years Total Paid$57,042$49,009$48,602 Forgiven Amount $0

COMPLETE EXIT COUNSELING! Federal Direct Loans On-line tutorial that takes between minutes Is required when you withdraw, graduate, or drop below half-time attendance (even if you plan to transfer to another school) Helps you understand your rights and responsibilities as a student loan borrower Provides useful tips and information to help you manage your loans Complete on-line at

Exit Counseling for Other Loans Perkins Loan: Institutional Loans: Private Loans: Done through your lender

Questions? Ways to contact Financial Aid: