1. HSPH Student Financial Services Domestic Student Exit Loan Sessions
Presented by:
Stephanie Hunt
Student Financial Services

2. Exit Hyperlink ECSI – via Harvard Pin
Perkins Loans- complete within ECSI
Private Loans (HUECU or CitiAssist) – complete within ECSI
Direct Loans (Subsidized, Unsubsidized, GradPLUS) – hyperlinks to NSLDS
Use Schools List Filter for MA
Select Harvard University – Harvard School of Public Health ( ) – Click ADD

3. Exit Essentials Know your lenders/servicers
Know your lenders’/servicers’ contact information
Update your lenders/servicers when you move; always provide updated address, and phone number
Open and read billing statements and updates that are sent to you from your lenders/servicers

4. Key Terms Subsidized Loans
Interest does not accrue while a student is in a deferment period
No more subsidized loans effective for loans disbursed on/after 7/1/2012
Unsubsidized Loans
Interest does accrue during deferment periods. Students may opt to pay this interest while in deferment to avoid capitalizing interest
Variable vs. Fixed Interest Rates
Variable: Interest rate fluctuates based on the market; adjusts annually, quarterly, or daily; based on the terms of the loan
Fixed: The interest rate remains the same for the length of the loan
Grace Period:
A deferment period between the last day of attendance and the time when repayment begins. Direct/Stafford – 6 months. Perkins Loan – 9 months.

5. Deferment Periods
An approved period of time when a student is not required to make payments on their loans
Deferments require documentation
The most typical loan deferment conditions are:
Enrollment in school at least half-time
Studying full time in a graduate fellowship program
Inability to find full-time employment (for up to 3 years)
Economic hardship (for up to 3 years)
Military: Active Duty/National Guard Duty
Other deferment conditions are loan specific

6. Forbearance Periods
Temporarily cannot meet repayment schedule but do not meet the requirements for a deferment
During forbearance, your loan payments are postponed or reduced
Interest continues to accrue
Generally: up to 12 months at a time for a maximum of 3 years

7. Cancellation (Loan Forgiveness & Discharge)
Releases you from all obligations to repay your loans
Total and permanent disability
Filed for bankruptcy (in rare cases)
Death
Forgiveness by some employers (especially certain federal agencies and departments)
Loan Forgiveness for Public Service Employees

8. Avoid Delinquency & Default
Default occurs when you become 270 days delinquent on your loans.
If you default:
Entire unpaid balance becomes due & payable
Reported to national credit agencies
Garnish wages; take all/part of federal tax refund
May be sued; pay collection fees and penalties, court costs, attorney fees
No longer eligible for other federal student aid or federal benefit programs
No longer eligible for loan deferments
Avoid Delinquency & Default

9. Federal Perkins Loan Terms Descriptions Subsidized Loan
No interest accrues while in school or during grace period
Origination Fee
None
Interest Rate
Fixed at 5%
Grace Period
9 months
Repayment Terms
10 Years
Lender Contact
Harvard Student Loan Office
580 Holyoke center
Cambridge, MA 02130
or (800)
Exit Material Website
PERKINS LOAN PROGRAM

10. Federal Direct/Stafford Loans
Terms
Descriptions
Subsidized/Unsubsidized
Both Loan Type exist in this program
Origination Fee
.5% origination fee up front (during disbursement) - 1% fee but 0.5% rebate upfront-retroactively applied if borrower does not make 12 monthly payments on-time
Interest Rate
As of July Fixed at 6.8% (slide 11 reflects interest rates for prior years)
Grace Period
6 Months
Repayment Terms
Standard, Extended, and Graduated (slide 15)
Income-Based, and Income Contingent (slide 16 & 17)
Lenders/Servicers
Multiple (slide 14)
Exit Material Website

11. 6.8% 1.76% (T-bill +1.7%) 2.36% (T-bill + 2.3%) 2.56% (T-bill +2.5%)
Interest Rates – Direct/Stafford Program Previous loans borrowed and NOT consolidated - based on the 91 day Treasury Bill - Current variable rate based on 0.06% Projections as of this week – 0.075%
Dates disbursed
Fixed or Variable
In-School and In-Grace Period Rate
In-Repayment Rate
7/06-6/12
Fixed
6.8%
7/98-6/06
Variable
1.76% (T-bill +1.7%)
2.36% (T-bill + 2.3%)
7/95-6/98
2.56% (T-bill +2.5%)
3.16% (T-bill +3.1%)
7/94-6/95
3.16%(T-bill+3.1%)
You may be able to deduct some or all of the interest that you pay on your Direct/Stafford Loans. See IRS Publication 970 at

12. Direct Graduate PLUS Terms Descriptions Unsubsidized
Loan begins accruing interest upon each disbursement.
Origination Fee
2.5% origination fee up front (during disbursement) - 4% fee but 1.5% rebate upfront-retroactively applied if borrower does not make 12 monthly payments on-time
Interest Rates
7.9% (If you borrowed a FFEL 8.5%)
Grace Period – Technically “No” but Forbearance is granted
For most loans a 6 months grace period will be granted but you should check with your Servicers
Repayment Terms
Standard, Extended, and Graduated (slide 15)
Income-Based, and Income Contingent (slide 16 & 17)
Lenders/Servicers
Multiple (slide 14)
Exit Material Website

13. Federal Direct Loans - Servicers
There are now multiple Direct Loan Servicers
Find your DL Servicer on
On the Servicer’s Website, the borrower can:
View and update demographic data
View account balance and a history of all payments
Make an online payment
Sign up for Electronic Debit from checking account
Choose/Change repayment plan or payment due date
Complete a deferment or forbearance request online or download the appropriate form

14. Direct Loan Servicers

15. Repayment Options Standard Repayment Plan Graduated Repayment Plan
Fixed amount each month; minimum $50 for up to 10 years, not including deferment or forbearance periods.
Graduated Repayment Plan
Payments start out low, then increase every two years. The repayment period is 10 years.
Extended Repayment Plan
Fixed amount per month or Graduated monthly payments that will increase every two years
Up to 25 years not including deferment or forbearance periods
Minimum $30,000 debt
Results in a lower monthly payment; however, total interest paid will be higher than the total interest paid with the Standard Repayment Plan.

16. Repayment Options (Cont.)
Income Contingent Repayment (ICR)
Monthly payment is based on:
Annual income (plus spouse if married)
Family size
Total loan amount
As your income changes, so do the payments.
After 25 years, any remaining balance on the loan will be forgiven, but you may have to pay taxes on the amount discharged.
Participants in the ICR Plan must authorize the U.S. IRS to inform the Department of Education of the amount of your income.
Available to Direct GradPLUS borrowers-7/1/2009

17. Repayment Options (Cont.)
Income Based Repayment (IBR)
Enacted July 1, 2009
Required monthly payment based on your income during any period of partial financial hardship – may be $0 per month
Typically IBR payments are < 10% of income
Monthly payment may be adjusted annually
Maximum repayment period may exceed 10 years
May qualify for cancellation of any outstanding balance of your loans after 25 years
Medical residents – IBR replaces the economic hardship deferment option (definition changed – eliminating the qualifying debt-to-income ratio)

18. Repayment Plan Examples
Debt Level
$40,000
$75,000
$100,000
Standard Plan (10 years)
$460
$863
$1151
Graduated Plan (1st two year, the increases every two years for 10 years)
$316
$593
$790
Extended Plan (Only > $30,000 in debt)
Fixed (up to 25 years)
Graduated Plan (1st two year, the increases every two years for up to 25 years)
$278
$227
$521
$425
$694
$567
ICR and IBR
Varies

19. Public Service Loan Forgiveness
Under this program, borrowers may qualify for forgiveness of the remaining balance on their loans after they have made 120 qualifying payments on those loans
Eligible federal student loans - Direct Loans ONLY
Must be in certain repayment plans (Standard, IBR, ICR)
Must be employed full time by certain public service employers
Any non-defaulted loan made under the William D. Ford Federal Direct Loan Program (Direct Loan Program) is eligible for loan forgiveness.
FFEL loans MUST be consolidated into the Direct Loan Program in order to be considered eligible.
Why is standard repayment not a good option for Public Service Loan Forgiveness?

20. Recommended Sessions Session One Session Two Session Three Title:
SOPHAS WEBINAR: What to Do When Your Student Loans are Due
Public Service Loan Forgiveness & Career Paths 
Educational Debt Relief: WEBINAR
Registration:
Register Online
 No registration required
Register Online 
Date
May 1st
April 19th or
May 17th
Day
Tuesday
 Thursday
Time
2:00 - 3:00 PM
12:30 - 1:30 PM
 2:00 - 3:00 PM
Location
Online - Webinar
FXB-G12
 Online - Webinar

21. What is Consolidation?
Multiple federal loans are combined into one new consolidation loan
A simple way to manage debt
One lender
One payment
Changes interest rate from variable to fixed – calculates a weighted average
or call
For Special Direct Consolidation Loan eligibility information, visit:

22. Ombudsman
If you are having a problem with your federal student loan, contact the FSA Ombudsman at the US Department of Education.
Website:
Phone at or
Fax at
Mail at: U.S. Department of Education
FSA Ombudsman
830 First Street, NE, Fourth Floor
Washington, DC at

23. Private Loan Contact Information
CitiAssist Loan - formerly HELP (Harvard Educational Loan Program) offered in conjunction with CitiBank
Online account view:
or (overseas)
Harvard University Employees Credit Union
HUECU Website –
Servicer - University Accounting Service (UAS) –
or extension 1705 (for calls outside the U.S.)

24. Helpful Websites for Borrowers
FinAid
Federal Loan Information
Student Aid on the Web
Repaying Your Loans
Calculate your expected monthly payments –
Student Gateway to the US Government

25. Questions?