Federal Student Loan. Forgiveness. Federal Loan Repayment and Repayment and. Forgiveness

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1 Federal Student Loan Federal Loan Repayment and Repayment and Forgiveness Forgiveness

2 Agenda Finding Your Federal Loans Repayment Plans Consolidation Public Service Loan Forgiveness Deferment & Forbearance Perkins Loan Cancellation

3 NSLDS The National Student Loan Data System (NSLDS) provides comprehensive information about your federal loan history, including lender and servicer contact information, loan totals, and loan status. Complete online loan exit counseling Need FAFSA PIN to log on:

4 What is a loan servicer? A company that handles the billing and other services for your federal student loan Always maintain correct contact info with your servicer

5 Main Repayment Plans Standard Repayment Extended Repayment Graduated Repayment Plans Based on your Income: Income Contingent Repayment (ICR) Income Based Repayment (IBR) Pay as You Earn (PAYE)

6 Standard Repayment Fixed amount each month 10 year repayment May have higher monthly payments than other plans, but the least amount of interest overall This is the plan students are set up on automatically

7 Extended Repayment Depending upon your loan balance, you may be able to lengthen the repayment period for your loans. This will bring down your monthly payment, but more interest will accrue, so you will pay more over time.

8 Graduated Repayment Begins with lower payments that gradually increase every two years. Loan term is years, depending upon the total amount borrowed.

9 Income Driven Repayment Plans Caps monthly payment at an amount intended to be affordable based on income and family size Must re-qualify every year Remaining balance forgiven after 20 or 25 years of on-time payments, depending upon plan eligibility

10 Consolidation Should I Consolidate? Allows borrowers to combine one or more federal loans into a new loan Up to a 30 year repayment plan Not for private/alternative loans Loss of grace period students should apply for consolidation 60 days before grace period ends Interest rate is the weighted average of all loans

11 What is PSLF? Public Service Loan Forgiveness (PSLF) Forgiveness of remaining balance after 120 payments under certain repayment plans while employed full-time by certain public service employers Only for non-defaulted loans made under the Direct Loan Program Only payments made after October 1, 2007 may be counted toward 120 payments

12 Qualifying Employment Any federal government, state government, or tribal government entity, including the military, public schools and colleges, public child and family services agencies, and special governmental districts Non profit employers that have received a 501(c)(3) designation from the IRS, which includes most private schools, colleges and universities, as well as thousands of other organizations, agencies, and charities

13 Eligible Public Service Jobs Emergency management Government Public safety and law enforcement (police and fire) Public health Public education Early childhood education Social work Public services for individuals with disabilities or the elderly Public interest legal servicers (including prosecutors) Public defenders Public library or other schoolbased service Military service

14 Employment Certification Form ECF is intended to assist borrower in tracking PSLF eligibility over the required 10 years Voluntary Can be submitted as much as once annually Your loan servicing may shift to FedLoan Servicing upon filing this form, since they are the designated federal PSLF loan servicer. Form located here:

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16 Deferment In-school deferments (graduate school) Must be enrolled in a degreeseeking program at least halftime Peace Corps Interest will still accrue on unsubsidized loans only Forbearance Forbearance allows students to stop making loan payments interest will still accrue Forbearance can be granted for financial hardship or illness Students will need to work with their servicer to request forbearance A temporary solution for temporary hardships

17 Perkins Loan Cancellation Cancellation opportunities for public service More information on Perkins Loan cancellation can be obtained through the Bursar s Office:

18 Questions? Office of Financial Aid (303) Bursar s Office (Perkins Loans Inquiries) (303) bursar@du.edu