DIRECT LOAN ENTRANCE COUNSELING SESSION

Transcription

1 DIRECT LOAN ENTRANCE COUNSELING SESSION

2 LOAN SESSION PACKET To receive credit for being here today, you must: Complete your Attendance Form. Your personal information Name as is on your SS card Verify your semester(s) request Be aware that loans for only one semester will be disbursed in two parts. Complete the Authorization Form Complete the Information Form

3 WELCOME TO YOUR LOAN ENTRANCE SESSION: You are here because: An entrance interview is a federal requirement that must be completed before you can receive student loan funds. The entrance interview is intended to help reduce student loan defaults. If you are aware of your rights and responsibilities you will be a more informed borrower and avoid default. You will be tested Instructions

4 HOW TO AVOID PROBLEMS WITH FINANCIAL AID File by the priority date (March 15) Read all material sent to you through mail and EPCC Class schedule Read important information in school catalog Satisfactory academic progress Direct Deposit

5 SCHOLARSHIPS You may receive scholarships as well as federal and state grants. Please visit our website: Financial Aid Scholarships Don t pay for educational or other services you can receive free of charge from the financial aid office

6 OTHER PAYMENT OPTIONS Emergency Loan Financial Aid Office Installment Plan Tuitions Office For returning students with 2.0 GPA, who have not been referred to a Collection Agency by the College Must be registered Pays up to 6 hrs. per semester $10.00 Processing fee For instate and out of state tuition students Apply on EPCC website Must be registered Covers half of total tuition $10.00 Processing fee

7 SATISFACTORY ACADEMIC PROGRESS S.A.P Must successfully complete 67% of coursework enrolled for academic year. Students are required to maintain a calculated 2.0 Cum. GPA which includes all developmental course work. Cannot have exceeded 150% rule; cannot have over 90 earned credit hours (excluding remedial and ESL courses).

8 TO APPLY FOR A DIRECT LOAN AT EPCC You must have a complete FAFSA application on file. You must meet the Satisfactory Academic Progress (SAP) criteria You cannot be in default status on a Federal Student Loan You cannot have met or exceeded the regulatory aggregate loan limit

9 ENROLLMENT You must be enrolled at least half-time to receive funds Remainder of any loan will be canceled if you drop below half-time If you drop prior to census date, your loan eligibility amount may change Total withdrawals will require repayment

10 NSLDS: NATIONAL STUDENT LOAN DATA SYSTEM is where you go to look up your loan history.

11 DIRECT LOAN VIDEO Entrance Counseling

12 SERVICERS Department of Education Your Servicers Great Lakes Sallie Mae Nelnet FedLoans Servicing (PPHEA)

13 DEBT MANAGEMENT Plan your financial living expenses, for example your: Housing low rent roommates stay with your parents Transportation Car pool Mass transit Additional School Expenses Books/Supplies Allied Health Prerequisites Cosmetology Kits

14 BUDGET CONSIDERATIONS Occupation Estimated Salary Manageable Loan Debt Monthly Payment Accountant / Auditors $43,500 $23,644 $290 Administrative Service Managers $ 47,080 $ 25,589 $ 313 Computer Programmer $ 57, 590 $ 31,302 $ 383 Cosmetologist $ 17,660 $ 9,598 $ 117 Dental Hygienist $ 51,330 $ 27,899 $ 342 Elementary / Secondary Teacher $ 39,700 $ 21,578 $ 264

15 REPAYMENT SCHEDULE AMOUNT

16 TYPES OF DIRECT LOANS Federal Direct Subsidized Loan Interest is paid by the government on your behalf while you re in-school or in-grace. Federal Direct Unsubsidized Loan Interest accrues on the loan while in school and during the grace period. As of July 1, 2010, these fees are at: 1.0% Loan Fee 0.5% Rebate Fee As of July 1, 2010, these fees are at: 1.0% Loan Fee 0.5% Rebate Fee Page 1 in your Guide

17 DIRECT LOAN INTEREST RATES Federal Direct Subsidized Loan Interest Rate Federal Direct Unsubsidized Loan Interest Rate Undergraduates with a first disbursement date between July 1, 2010, and June 30, 2011: Direct Unsubsidized Loans for all students and graduate students with a first disbursement date between July 1, 2010, and June 30, 2011: 4.5% 6.8% Page 5

18 GRACE PERIOD 6-Month Grace Period. The grace period is the amount of time you are given when you graduate, withdraw, or drop to less than half-time before you are expected to make your first payment. The minimum repayment is $50 per month but can be more depending upon the amount borrowed.

19 HOW MUCH CAN I BORROW PER YEAR? Annual Loan Limits for Direct Subsidized Loans and Direct Unsubsidized Loans Subsidized Undergraduate Students Unsubsidized- Independent Undergraduate Students Total Per Year Freshmen $3,500 $6,000 $9,500 Sophomore $4,500 $6,000 $10,500

20 AGGREGATE LIFETIME LOAN LIMITS Aggregate Loan Limits: Maximum Total Outstanding Loan Debt Dependent Undergraduate Students Undergraduate $31,000 (maximum $23,000 subsidized) Independent Undergraduate Students $57,500 (maximum $23,000 subsidized)

21 What happens after you have received your loan? Ask yourself: What options do I have to remain in good status with my Federal Student Loans?

22 DIRECT LOAN VIDEO Deferment Forbearance & Repayment Options

23 YOUR RIGHTS &YOUR RESPONSIBILITIES Follow along on page 15 of your book.

24 YOUR RIGHTS Page 15 I have the right to: Written information on my loan obligations and information on my rights and responsibilities as a borrower. A grace period and an explanation of what this means. A disclosure statement, received before I began to repay my loan, that includes information about interest rates, fees, the balance I owe, and the number of payments.

25 YOUR RIGHTS Page 15 Deferment of repayment or forbearance for certain defined periods, if I qualify and if I request deferment or forbearance. Prepayment of my loan in whole in part anytime without an early payment penalty. A copy of my MPN either before or at the time my loan is disbursed. Documentation that my loan is paid in full.

26 YOUR RESPONSIBILITIES I am responsible for: Page 15 Repaying my loan even if you do not complete your program, are unable to find employment after graduation, or are dissatisfied with the education you received. Making monthly payments on my loan after my grace period ends, unless I have a deferment or a forbearance and repayment options will be provided during exit counseling Notifying the Direct Loan Servicing Center of anything that might alter my eligibility for an existing deferment or forbearance.

27 YOUR RESPONSIBILITIES Page 15 Completing Exit Counseling Required of all loan recipients once drop below half-time, graduate, or transfer You must take an exit interview before leaving school Records will be on hold until exit is completed Go online to

28 YOUR RESPONSIBILITIES Notify your school and the Direct Loan Servicing Center if you: Move or change address Change your name Page 15 Withdraw from school/drop below half time Transfer to another school Fail to enroll or reenroll in school for the periods intended Change your expected graduation date; or Graduate.

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30 DEFAULT MANAGEMENT PLAN This plan was developed to assist El Paso Community College s successful reentry into the Student Loan Program. This plan is on file with the Department of Education in Washington D. C. and the Texas Guarantee Student Loan Corporation in Austin, Texas

31 EL PASO COMMUNITY COLLEGE Our Default Management Plan

32 EL PASO COMMUNITY COLLEGE DEFAULT MANAGEMENT PLAN Students must attend an EPCC loan counseling session each year prior to having a loan certified, even if they have already attended a session at another school Transient and/or undeclared major students are not eligible for any financial aid including Stafford student loans. No loan or benefits of loan shall be disbursed prior to the end of the add/drop period for each semester.

33 EL PASO COMMUNITY COLLEGE DEFAULT MANAGEMENT PLAN First time borrowers can not receive loan or loan benefits disbursements until 30 days after the first class day of the semester. If at any time a student falls below halftime or fails to meet EPCC s Satisfactory Academic Progress (SAP) criteria, the loan will be canceled without notice and any un-disbursed funds will be returned to the lender.

34 EL PASO COMMUNITY COLLEGE DEFAULT MANAGEMENT PLAN First time borrowers can not receive loan or loan benefits disbursements until 30 days after the first class day of the semester. If at any time a student falls below halftime or fails to meet EPCC s Satisfactory Academic Progress (SAP) criteria, the loan will be canceled without notice and any un-disbursed funds will be returned to the lender.

35 EL PASO COMMUNITY COLLEGE DEFAULT MANAGEMENT PLAN EPCC is a two year degree granting institution. Students may only receive freshman and sophomore level loans while attending EPCC. Freshman level $3500 Sophomore level $4500 Freshman level is 0 29 earned hours Sophomore level is 30 + earned hours

36 EL PASO COMMUNITY COLLEGE DEFAULT MANAGEMENT PLAN Developmental (remedial & ESL) do not count as hours toward student classification. Students requesting a loan while in developmental courses will not be eligible for a sophomore level loan until they have completed and earned 30 academic hours. Loans for students not enrolled on a fulltime basis will be adjusted down to half of the eligible amount as long as the student is enrolled at least ½ time

37 EL PASO COMMUNITY COLLEGE DEFAULT MANAGEMENT PLAN If at any time a student s enrollment status drops below half-time, they must complete the student loan exit counseling process. Failure to complete this will result in a hold being placed on all student records. Students in default on a prior student loan cannot receive any further loans or other financial aid until the default status has been placed in satisfactory status. Students must provide the Financial Aid Office written documentation verifying this status.

38 PAYMENT DEADLINE DATES Keep in mind your payment deadline date! If you do not have enough grants or scholarships to pay for your full tuition you may pay all or the remainder out of pocket or you may take out a full tuition emergency loan.

39 LOAN SESSION PACKET To receive credit for being here today, you must: Complete your Attendance Form. Your personal information Name as is on your SS card Verify your semester(s) request Be aware that loans for only one semester will be disbursed in two parts. Complete the Authorization Form Complete the Information Form Pull your instructions

40 WE RE DONE!!!!! GOOD LUCK WITH YOUR LOAN APPLICATION!