FINANCIAL AID EXIT COUNSELING

Transcription

1 FINANCIAL AID EXIT COUNSELING Presented by Bradley Hendrix Financial Aid Office, Default Prevention Coordinator

2 Agenda Preparing for Repayment Rights & Responsibilities Total Average Indebtedness Exit Counseling and Repayment Plans Public Service Loan Forgiveness Program (PSLF) Loan Consolidation and Cancellation Internship/Residency Forbearance Options? Delinquency and Default Keys to Successful Repayment Content information provided by Federal Student Aid, Fedloan Servicing, Great Lakes, and SALT 2

3 Preparing For Repayment Complete the Mandatory Exit Counseling Exit Counseling Online Print a copy of your *NSLDS report Create an account with your loan servicers List of Loan Servicers Create an account with SALT Estimate and Review Repayment Options Repayment Calculator *NSLDS report does not include the following reports: Title VII loans (Primary Care, LDS, HPSL, and Nursing) These are serviced by ECSI Private Alternative Education Loans 3

4 Preparing For Repayment PLEASE NOTE: If you do not choose a payment plan during grace period, you will be placed in the standard plan. Can change your payment plan Can change your due date Can postpone payment with a deferment/forbearance Will pay more in interest with longer repayment periods 4

5 Your Rights & Responsibilities

6 Your Rights Receive a copy of your signed MPN Receive a disclosure statement Receive a six-month grace period Prepay all or part of your loan without penalty Deferments & forbearance, if eligible Written notice if your loan is transferred Proof of discharge after repaying loan in full 6

7 Your Responsibilities Repay your loan(s) Make on-time monthly payments Read correspondence from loan servicer Notify loan servicer of changes within 10 days School and enrollment status Name, address, and telephone number Ask your loan servicer for help 7

8 Exit Counseling

9 Exit Counseling Requirement Log onto 9

10 2014 Total Average Indebtedness

11 DISCIPLINE 2014 TOTAL AVERAGE INDEBTEDNESS DOCTOR OF DENTAL MEDICINE $307,132 DOCTOR OF OPTOMETRY $191,404 DOCTOR OF OSTEOPATHIC MEDICINE $258,919 DOCTOR OF PHARMACY $208,721 DOCTOR OF PHYSICAL THERAPY - ENTRY $157,103 DOCTOR OF PODIATRIC MEDICINE $225,081 DOCTOR OF VETERINARY MEDICINE $255,747 MASTER OF SCIENCE IN HEALTH SCIENCES $56,382 MASTER OF SCIENCE IN MEDICAL SCIENCES $37,108 MASTER OF SCIENCE IN PHARMACEUTICAL SCIENCES $18,080 MASTER OF SCIENCE IN PHYSICIAN ASSISTANT STUDIES $95,539 MID-CAREER POST-BACCALAUREATE DOCTOR OF PHARMACY $155,273 11

12 DISCIPLINE 2014 TOTAL AVERAGE INDEBTEDNESS ADN TO MS IN NURSING - AMBULATORY CARE $57,068 ADN TO MS IN NURSING - FAMILY NURSE PRACTITIONER $92,673 ADN TO MS IN NURSING - LEADERSHIP AND MANAGEMENT $58,782 DOCTOR OF NURSING PRACTICE $56,877 FAMILY NURSE PRACTITIONER $36,827 MSN - CLINICAL NURSE LEADER $41,000 MSN - FAMILY NURSE PRACTITIONER $71,649 MSNE - AMBULATORY CARE $131,242 MSNE - CLINICAL NURSE LEADER $167,995 MSNE - FAMILY NURSE PRACTITIONER $130,801 MSNE - LEADERSHIP AND MANAGEMENT $100,275 MSN/FNP - DNP DUAL DEGREE PROGRAM - TRADITIONAL $109,218 12

13 Repayment Plans

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16 Repayment Example 1. Student Single No dependents Salary = $80,000 annually WesternU Average Loan Debt = $200,000 Note: be sure to add any underlying loan debt. 16

17 Repayment Plans 17

18 Public Service Loan Forgiveness

19 Public Service Loan Forgiveness Note: This program is under review and information is subject to change. Contact: Fed Loan Servicing

20 Loan Consolidation & Cancellation

21 Loan Consolidation One or more federal student loans combined into one new loan. Fixed interest rate based on the weighted average of the interest rates rounded up to the nearest 1/8 percent (capped at 8.25 percent). Repayment term can be extended to up to 30 years based on total education debt. Repayment schedule is the standard plan but can be changed to extended or graduated plan. As of July 1, 2010, the U.S. Department of Education (ED) is the only lender of a Consolidation loan. 21

22 Loans Eligible for Consolidation Federal Family Education Loan Program (FFELP) Subsidized and Unsubsidized Stafford loans PLUS loans William D. Ford Direct Loans Program (DL) Subsidized and Unsubsidized Direct Stafford loans Direct PLUS loans Other federal student loans Perkins loans Health Professions Student Loans (HPSL) Loans for Disadvantaged Students (LDS) Nursing Student Loans (NSL) 22

23 Loan Cancellation In extreme circumstances: Total and permanent disability Death Federal Loans are not dischargeable in bankruptcy 23

24 Internship / Residency Forbearance Options?

25 Forbearance Temporary reduction or postponement of payments Not automatic You must apply and receive approval from lender Primary reasons Poor health Internship/ Residency Financial hardship Interest will continue to accrue Contact your loan servicer for the best options available 25

26 Delinquency & Default

27 Avoid Delinquency & Default Pay on time A payment received one day late is considered delinquent. Delinquent payments are reported to the credit bureaus. Always call your school or servicer for help. Open a FREE account with SALT - Open a FREE account with your Loan Servicer Loan Servicers IMPORTANT NOTE: Beware of companies advertising consolidation debt relief who are not affiliated with the Department of Education. 27

28 Consequences of Default Full amount of loan is due Including collection costs, accelerated interest, court costs, and attorney s fees. Subject to federal and state offsets Wages and tax refund may be garnished Credit will be tarnished Loss of deferment and forbearance options Loss of eligibility for future financial aid May lose eligibility for certain federal or state jobs May lose professional license 28

29 Keys to Successful Repayment

30 Keys to Successful Repayment Keep school and servicer informed about changes Keep copies of all documents in one place Open all mail The longer it takes to repay your loans, the more interest you will pay Build good credit with timely payments Always ask for help Note: Interest Payments are tax deductible up to $2,500 for each tax filing year. 30

31 Resources Financing A Healthy Future Federal Student Aid Financing a Healthy Future Federal Student Aid Repayment Calculator Federal Student Aid Repayment Calculator Mandatory Exit Counseling, Loan Consolidation, and application for Income Driven Plans StudentLoans.Gov WesternU's Loan Forgiveness and Repayment Database ECSI Financial Aid Staff and Contact Information Loan Forgiveness and Repayment Search ECSI FAO Contact Information 31

32 Federal Loan Servicers 32

33 QUESTIONS

34 THANK YOU FOR LISTENING