1. Allied Health Sciences Lunch, Learn, and Loans: Understanding Student Loans and Repayment Kristin Anthony – Assistant Director of Financial Aid, Office of Scholarships and Student Aid Perry Studevent – Assistant Director of Student Services and Financial Aid, Allied Health Sciences

2. Overview The Basics of Student Loans Differences in Loan Types When Does repayment begin? Loan Servicers Repayment Options Consolidation Assistance Topics Conclusion

3. The Basics of Student Loans National Student Loan Database System – www.nslds.ed.gov www.nslds.ed.gov – www.pin.ed.gov www.pin.ed.gov Federal Loans – Subsidized Stafford/Direct Loans – Unsubsidized Stafford/Direct Private Loans – Graduate Plus Loans – Perkins Loans Private Loans

4. Differences in Loans Subsidized Loans: No interest accrues while student is enrolled at least half-time. Guaranteed by the Federal Government. Unsubsidized: Interest accrues but student not required to make payments until they leave school. Guaranteed by Federal Government. – Begins accruing interest from the time the loan is disbursed. Private Loans: Can have “fixed” or variable interest rates. Not guaranteed by the Federal Government.

5. When Repayment Begins Private Loans – Depends Upon Your Lender Federal Perkins Loans – 9 months after last date of half-time enrollment Direct/Stafford and Graduate Plus Loans: – 6 months after last date of half-time enrollment

6. Loan Servicers A loan servicer is a company that handles the billing and other services on your federal student loan. The loan servicer will work with you on repayment plans and loan consolidation and will assist you with other tasks related to your federal student loan. It is important to maintain contact with your loan servicer.repayment plansloan consolidation

7. Repayment Options Consolidation Standard/Graduated Income-based Pay as You Earn Income-Contingent Forgiveness, Cancellation, and Discharge Know your loan history: www.nslds.ed.gov

8. Definitions: Consolidation Simply combining several loans into one: Review your current federal student loans – Check your student loan account online, review your loan documents or contact your lender or loan servicer. If you don’t know who your loan servicer is, you can find out at www.nslds.ed.gov. www.nslds.ed.gov – Once you consolidate, that loan is locked. You can add other loans to it later, but it cannot be changed. – Most loan repayment incentive programs require consolidation of you loan.

9. Types of Payment Plans Standard/Graduated Extended Income Based Repayment Pay As You Earn Income-Contingent Repayment Income Sensitive Repayment

10. Standard/Graduated Standard: Payments are fixed amount of at least $50 per month Graduated: Payments start low and increase over time. Standard: Pay the least amount of interest over time. Graduated: Pay more in interest than a standard repayment, but less than an extended plan.

11. Extended Repayment Plan Payments fixed or graduated Lower monthly payments Have up to 25 years to repay loans Must have more than $30,000 for each “type” of loan to be eligible for the extended repayment plan. – If you have $10,00 in Graduate Plus and $35,000 in Direct Unsubsidized, only the unsubsidized loan qualifies for extended repayment plans.

12. Income Based Repayment Plan Consolidation loans included. Must have a financial hardship. Maximum monthly payment will be 15% of your discretionary income (gross income – 150% of the poverty level). Payments may change as income changes. After 25 years any outstanding balance will be forgiven…..BUT….. It is considered taxable income.

13. Pay as Your Earn Consolidation loans included. Must have a financial hardship. Maximum monthly payment will be 10% of your discretionary income (gross income – 150% of the poverty level for your family size and state). Payments change as income changes. After 20 years any outstanding balance will be forgiven…..BUT….. It is considered taxable income.

14. Income-Contingent Repayment Plan Payments calculated each year and based on your adjusted gross income, family size, and total amount of your direct loans. After 25 years remaining balance is forgiven. May be considered taxable income.

15. Income-Sensitive Repayment Plan Payments calculated each year and based on your annual income (without consideration for family size or total amount of your loans. Each lender’s formula for determining monthly payment amounts may vary.

16. Loan Forgiveness, Cancellation and Discharge Total and permanent disability (TPD). Death. Teacher Loan Forgiveness Public Service Forgiveness Perkins Loan Cancellation and Discharge

17. Teacher Loan Forgiveness Teach full-time for five complete and consecutive academic years. In certain elementary, secondary, and educational service agencies that serve low income families, Other qualifications Forgiveness of up to $17,500 on Direct/FFEL subsidized and unsubsidized loans. – Link for Information Link for Information

18. Public Service Loan Forgiveness You must be employed full time (in any position) by a public service organization, or serving in a full-time AmeriCorps or Peace Corps position. For Direct Loans given after October 1 st, 2007. – Previous loans can be consolidated into a direct loan which would then qualify. In general, must be on the IBR, Pay As Your Earn, or ICR repayment plans to qualify and make 120 payments on a qualified loan. A government organization (including a federal, state, local, or tribal organization, agency, or entity; a public child or family service agency; or a tribal college or university). A not-for-profit, tax-exempt organization under section 501(c)(3) of the Internal Revenue Code. A private, not-for-profit organization (that is not a labor union or a partisan political organization) that provides services such as: Link for Information

19. Reminders: We are providing basic information, for more detailed information please discuss with your loan servicer. If you don’t know your loan servicer, look them up at www.nslds.ed.gov with your federal PIN.www.nslds.ed.gov Link for Loan Repayment Information: – http://studentaid.ed.gov/repay-loans/ http://studentaid.ed.gov/repay-loans/

20. Topics You Provided: Repaying student loans (minimally) while in school. Best loans to accept or where to find more scholarship opportunities. APTA Scholarship InformationAPTA Scholarship Information Negotiating with potential employers for increased pay for loan repayment, or employer assisting with repayment of loans as an added bonus. Can you take out more at a later time in the year if you decide you need more, and if so how? / Does the interest accrue the entire time you're in school for every single loan you take out, or just for that current year that it's for? FELS repayment, how they consider the "get a job within 6 months" aspect of forgiveness (such as, what happens if you go on maternity leave within the first year on the job, or what happens if the job is not a good fit and you leave within a year?) I realize neither of these are ideal situations but they are not uncommon. Are there any loans that we are eligible for that are forgivable? How can we find out about those? how to pay off part of the principle in addition to your monthly payment (rather than have the extra applied to subsequent payments) working for state programs ( UNC hospital ) that will repay loans after a certain amount of time Loan Consolidation Preparing as an out of state student (higher costs) compounded interest

21. Main Points Don’t freak out! Loans are investments in your education. Apply for residency. – Spring 2014: January 22 nd, 2014 – Summer I, 2014: May 27th, 2014 – Summer II: July 2 nd, 2014 – Fall 2014: September 2 nd, 2014 Contact your loan servicer if you have ANY problems or hardships. You can pay early without any penalties. If you have extra money (after expenses and saving) apply that toward your highest interest rate item (credit cards, student loans, car – etc.).