Education Finance Council

Transcription

1 EFC Members Alternative Student Loan Programs Education Finance Council 1850 M STREET, N.W. SUITE 920 WASHINGTON, D.C

2 Table of Contents Overview...3 Alaska Student Loan Corporation Connecticut Higher Education Supplemental Loan Authority...8 Higher Education Servicing Corporation Indiana Secondary Market for Education Loans Inc Iowa Student Loan Corporation Kentucky Higher Education Student Loan Corporation Maine Educational Loan Authority Massachusetts Educational Financing Authority Minnesota Office of Higher Education New Hampshire Higher Education Loan Corporation New Jersey Higher Education Student Assistance Authority Rhode Island Student Loan Authority South Carolina Student Loan Corporation Vermont Student Assistance Corporation

3 Overview The Education Finance Council (EFC) is the trade association that represents nonprofit and state agency student loan organizations. These organizations operate as secondary markets, loan servicers, alternative loan originators, and college planning resources for students and families in their states. EFC s mission of making college more affordable and accessible is realized through its members low-interest, fixed rate loan programs as well as vast college access and completion programs; provided to students, families, and schools across the nation at no cost. While the Health Care and Education Reconciliation Act of 2010 eliminated the ability for EFC members to originate federally guaranteed education loans, several organizations operate supplemental student loan programs to cover the cost of higher education degree attainment continuing their legacies of providing low-cost financing options to students. In the wake of the 2008 financial crisis, underwriting criteria has vastly improved; enhancing the quality of EFC members alternative education loans. In addition, EFC members advise borrowers to first utilize federal Stafford loans, scholarships, and grants and use private educational loans to supplement all other aid. A key feature of each alternative loan provided by EFC members is that they have a fixedinterest rate. Many programs also include borrower benefits, such as interest rate reduction options and benefits for students that work in a critical field in the organization s state. 3

4 Alaska Student Loan Corporation Loan Programs &Rates All of the following state education loans are originated and serviced by the Alaska Commission on Postsecondary Education (ACPE), Alaska s higher education agency. Alaska Supplemental Education Loan 0% origination fee Fixed interest rate of 6.7% Alaska presence benefit: -0.50% Recurring online payment benefit: -0.25% Lowest rate for qualifying term: 5.95% Maximum annual loan limits - Career Training (Vocational): $6,500 - Undergraduate: $8,500 - Graduate: $9,500 Maximum aggregate loan limits - Career Training (Vocational): $42,500 - Undergraduate: $42,500 - Graduate: $47,500 - Combined: $60,000 To qualify for an Alaska Supplemental Education loan, the borrower must: - Complete the FAFSA, if required by the postsecondary institution; - Have a high school diploma or equivalent; - Enroll at minimum half-time in an eligible program; - Not be delinquent or have ever defaulted on a prior student loan or be past due in child support obligations; - Have a credit history that includes a FICO credit score of 680 or higher, or have a cosigner who meets the 680 FICO requirement; and - Be an Alaska resident or be attending an eligible school in Alaska. For more information please visit Alaska Supplemental Education Loan Alternative Consolidation Loan 4

5 Permits current ACPE state education loans into a single fixed-rate loan. Fixed interest rate of 6.7% Recurring online payment benefit: -0.25% Lowest rate for qualifying term: 6.45% To qualify for an Alternative Consolidation Loan, the borrower must: - Have a minimum of $3,500 of eligible debt to consolidate; - Have a credit history that includes a FICO credit score of 680 or higher or have made payments in full and on time for the 18 months preceding the consolidation loan application; and - Not be more than 29 days delinquent on any loan and voluntarily made all the majority of payments. Family Education Loan To help cover education expenses for a student, family members, (spouse, parent, or grandparent) may borrow the Alaska Family Education Loan. Fixed interest rate of 6.7% Recurring online payment benefit: -0.25% Lowest rate for qualifying term: 6.45 % Annual loan limits - Career Training (Vocational): $6,500 - Undergraduate: $8,500 - Graduate: $9,500 Aggregate loan limits - Career Training (Vocational): $42,500 - Undergraduate: $42,500 - Graduate: $47,500 - Combined: $60,000 To qualify for an Alaska Family Education loan, the borrower must: - Be a U.S. citizen or eligible non-citizen, and an Alaska resident - Not be delinquent or have ever defaulted on a prior student loan or be past due in child support obligations; - Not have a credit history that demonstrates chronic inability or unwillingness to pay an extension of credit, or have a credit-worthy cosigner; - Within the preceding five years, not have had an education loan written off for any reason except for a discharge in bankruptcy; and - Have complied with any applicable military selective serve registration requirements. Specialized Loan Programs 5

6 Teacher Education Loan Provides funding to cover education expenses for Alaska high school graduates nominated by rural school districts to pursue a degree in elementary or secondary education Borrowers may be eligible for up to 100% forgiveness of their debt if they return to Alaska and teach in a rural area 0% origination fee Fixed interest rate of 7.5% during the repayment period; 0% interest rate during in-school period Recurring online payment benefit: -0.25% Lowest rate for qualifying term: 7.205% Maximum annual undergraduate loan amount: $7,500 Maximum aggregate undergraduate loan amount: $37,500 To qualify for an Alaska Teacher Education loan, the borrower must: - Be nominated by a qualifying Alaska school district; - Be a U.S. citizen or eligible non-citizen and an Alaska resident; - Meet criteria set by the nominating school district; - Not be delinquent or have ever defaulted on a prior student loan or be past due in child support obligations; - Not have a credit history that demonstrates chronic inability or unwillingness to pay an extension of credit, or have a credit-worthy cosigner; - Graduate from an Alaska public or private high school; - Enroll in a four-year bachelor degree program in elementary or secondary teacher education, or enrolled full time in a fifth-year teacher certification program; and - Comply with any application military selective service registration requirements. For more information, please visit Alaska Teacher Education Loan Winn Brindle Loan The A.W. Winn Brindle Memorial Education Loan program was established in memory of A.W. Winn Brindle, who was president of the Wards Cove Packing Company and Columbia Wards Fisheries. It is funded by private donations and contributions from fisheries in exchange for tax credits. The Winn Brindle Memorial Education Loan provides funding to cover educational expenses for students enrolled in a fisheries-related field. Borrowers may be eligible for up to 50% forgiveness of their loan debt when they return to Alaska and work in a qualifying fisheries-related field. No origination fee 5% fixed interest rate Recurring online payment benefit: -0.25% 6

7 Lowest rate for qualifying term: 4.75% To qualify for a Winn Brindle Memorial Education Loan, a borrower must: 1. Be an Alaska resident; 2. Be enrolled full-time in a vocational certificate or undergraduate or graduate degree program in a fishers-related field of study; and 3. Not have adverse credit history. Professional Student Exchange Loan - In most states, PSEP students pay resident tuition, and the students home state pays an additional support fee to the institution. Alaska students are individually responsible for paying tuition and the support fee. ASLC finances the support fee costs in the form of a loan which the student must repay. - PSE loans are available to eligible Alaska residents enrolled at an eligible PSEP institution in these fields of study: Dentistry, Occupational Therapy, Optometry, Physician Assistant, Podiatry, Pharmacy, and Physical Therapy. WWAMI Loan - The Alaska WWAMI Biomedical Program provides residents with high-quality medical education not available in-state. The program is a collaboration among the universities in five northwestern states (Washington, Wyoming, Alaska, Montana, and Idaho) under the overarching administration of the University of Washington School of Medicine. - For more information, please visit Alaska WWAMI General Information ASLC advises that the Alaska Supplemental Education Loan is intended to: - supplement lower cost Federal Direct Loan Program when federal and gift aid does not cover the cost of attendance; and - provide a low cost loan option for students attending state-authorized career, vocational, and technical schools. ASLC no longer originates loans under the Federal Family Education Loan Program (FFELP), however existing FFELP loans may be eligible for certain borrower benefits. Contact Information Alaska Student Loan Corporation Phone: P.O. Box Juneau, AK

8 Connecticut Higher Education Supplemental Loan Authority The CHESLA 2014 Loan Program Available to undergraduate, graduate, and professional students Non-tiered, Fixed interest rate of 6.75% APR (which accounts for 3% reserve fee) ranges from 7.11% to 7.28% over the life of the loan. Monthly payments of $5.63 per $1,000 borrowed during the in-school and sixmonth grace period. Monthly payments of $10.34 per $1,000 borrowed during the 140- month repayment term for principal and interest. No prepayment penalties, application fee or application deadline Loans from $2,000 up to the total cost of education per academic year (less other financial aid received), to a cumulative maximum total of $125,000 Loans for either current or prior year s educational expenses Graduate and professional students may defer interest while in school and for a six-month grace period (interest is capitalized annually). The student must be enrolled in a degree granting or certificate program on at least a halftime basis in an accredited nonprofit college or university in Connecticut, or be a Connecticut resident attending an accredited nonprofit college or university in the U.S. Available Benefits: a). Death Benefit - If the benefitting student dies prior to loan payoff, the borrower and cosigner(s) may be released from the outstanding debt; and b). Cosigner Release Benefit - Available after 60 months of on time active repayment if the student borrower meet s CHESLA s credit criteria. General Information The Connecticut Higher Education Supplemental Loan Authority (CHESLA) was created by Connecticut s General Assembly in 1982 to help students and their families afford the costs of a college education by reducing the financial burden of borrowing. CHESLA is authorized to sell tax-exempt bonds and uses the proceeds from those bonds to provide loans to students. As these student loans are repaid to the Authority, the Authority repays bondholders. Contact Information Connecticut Higher Education Supplemental Loan Authority 10 Columbus Boulevard, 7 th Floor Hartford, Connecticut Phone: Web address: 8

9 Higher Education Servicing Corporation Administrator for North Texas Higher Education Authority, Inc. Loan Programs & Rates Texas Extra Credit Education Loan Variable interest rates starting as low as LIBOR % to LIBOR % Online loan application takes as little as 15 minutes to complete Initial credit decision is typically made within minutes Application calculates APRs and repayment amounts in real time, so comparing loan scenarios is easy EasyInvite SM lets applicants invite a cosigner to their application with a few simple clicks Loan Limits o Borrow up to the full cost of education, minus other financial aid as certified by the school o Minimum loan amount is $1,000 o Annual loan maximum is $65,000 o Maximum aggregate loan limit is $150,000, inclusive of all student loan debt and any unsecured deferred consumer debt No origination or disbursement fees Loans may be used to cover past due balances Death Release Option for student borrowers Satisfactory Academic Progress (SAP) not required Funds are sent directly to the school Borrower Benefits o Interest rate reduction of 0.25% just for graduating o Interest rate reduction of 0.25% for making monthly principal and interest payments via automatic withdrawal from a savings or checking account o Release of cosigner from liability after 24 on-time monthly loan payments Four repayment options 9

10 o Immediate Repayment: Begin making full principal and interest payments days after funds have been disbursed o Interest-Only Repayment: Make interest-only payments while in school; defer principal payments until after graduation o Partial Interest Repayment: Pay $25 per month while you are in school; defer principal and outstanding interest until after graduation o Full Deferment: Defer all principal and interest payments until after graduation Two repayment terms (10 or 15 years) Eligibility: o The student borrower must be enrolled at least half time in a degree-granting program (as certified by the school) at an approved school. o The student borrower and cosigner (if applicable) must be permanent residents of Texas. o A student borrower applying without a cosigner must be at least eighteen years old at the time of the loan application. If a student applies with a cosigner, the cosigner must be at least eighteen years old. Applying with a cosigner may help the applicant pass the credit review, and may even help secure a lower rate. o A student who is at least seventeen years old may apply with an eligible cosigner. o The applicant applying as creditworthy (i.e. the cosigner or the student applying without a cosigner) must have proof of current income. The applicant meeting the income requirement must submit verification of current income. o The student borrower and cosigner (if applicable) must be United States citizens/nationals or lawful permanent resident aliens of the United States. For more information, please visit or us at info@texasextracredit.com College Ready Loan Program Higher Education Servicing Corporation offers a customizable, turn-key alternative loan product for our partnering lending institutions called the College Ready Loan Program (CRLP). CRLP was developed to provide our lending partners with a competitive, low-cost higher education loan solution that meets the lender s specific yield requirements and risk concerns. The Program offers a complete suite of services including online application processing, credit underwriting, automated school certification, loan originations, interim and repayment servicing, marketing support and much more. CRLP provides lenders a complete line of loan products including: 10

11 o Private Education Loans o Private Education Sponsor Loans o Private Education Refinance Loans o Private Education Consolidation Loans Partnering lending institutions have the ability to choose from a variety of flexible program features such as: o Interest Rates o Product Pricing and Tiers o Repayment Terms and Options o Origination and Disbursement Fees o Borrowing Limits o Borrower Benefits o Deferment and Forbearance Options Contact Information Higher Education Servicing Corporation Administrator for North Texas Higher Education Authority, Inc. Phone: / W Green Oaks Blvd., Suite. 200 Arlington, TX

12 Indiana Secondary Market for Education Loans Inc. The Hoosier Education Loan Partnership The Hoosier Education Loan Partnership loan offers borrowers, who meet the underwriting and credit criteria on their own or with cosigner(s), four options. Fixed-Rate Option Requiring Immediate Payments Fixed interest rate from 5.66% to 9.06% 0% origination fee 5.66% to 9.06% APR Variable-Rate Option Requiring Immediate Interest-Only Payments Variable interest rate of 3.10% to 8.10% + 3-month Libor index 0% origination fee 3.33% to 8.33% APR Interest-only payments while enrolled 12-year principal and interest repayment period Variable-Rate Option Delaying Repayment While Enrolled Variable interest rate of 3.25% to 8.25% + 3-month Libor index 0% origination fee 3.46% to 8.35% APR Deferred payments while enrolled Principal and interest repayment begins six months after in-school period ends 12-year principal and interest repayment period Variable-Rate Option Requiring Immediate Payments Variable interest rate from 2.95% to 7.95% + 3-month Libor index 0% origination fee 3.18% to 8.18% APR General Information Minimum borrowing amount of $1001 The minimum loan amount differs for residents of the following states: Colorado ($3,001 minimum), Oklahoma ($4,701 minimum), South Carolina ($3,501 minimum) and Wisconsin ($2,001 minimum) Maximum annual amount: cost of attendance minus other aid 12

13 Maximum cumulative amount: $80,000 How To Access Loan Applications Apply via the ISM Education Loans site, click Apply Now Key Program Feature: Student Loan Game Plan For a borrower to be eligible for a Hoosier Education Partnership loan, they must complete the Student Loan Game Plan interactive financial literacy tool first. Decisions students make about loans and paying for a postsecondary education affect their financial future greatly. For this reason, ISM wants students and families to have as much information as possible before taking a HELP loan. While students often find it is necessary to borrow some money to pay for college, ISM wants the amount to be as low as possible. Student Loan Game Plan is one way to help make that happen. Student Loan Game Plan helps students understand ways to borrow less and set the foundation for a financially responsible future. The information in Student Loan Game Plan can help students and their cosigners understand the consequences of over borrowing and also discover how to avoid over borrowing. A general version of Student Loan Game Plan that is not part of a loan process is available for use to the public at Providing Solutions to Real Risks Students often find it easier to borrow now and worry about it later. Student Loan Game Plan uses several methods to help borrowers understand the consequences of over borrowing: Potential problems caused by over borrowing. Customized estimated salary information based on borrowers majors. Estimated total student loan payment amounts based on realistic loan amounts. An estimated student loan debt-to-income ratio based on the borrower s information, compared to recommended ratios from U.S. Department of Education regulations. A warning that student loans are a serious financial obligation that must be repaid. A sample monthly budget based on the borrower s anticipated starting salary and national-average expenses, including student loan payments. A variety of strategies to reduce the need for student loans. A customizable and printable action plan to reduce overall borrowing. The ability to lower the requested loan amount in online private student loan applications. Contact Information ISM Education Loans Inc. 251 N. Illinois St., Ste. 400 Indianapolis, IN Phone: Web address: 13

14 Iowa Student Loan Liquidity Corporation Loan Programs & Rates Partnership Loan The Partnership Advance Education Loan (Partnership Loan) offers borrowers who meet the underwriting and credit criteria, on their own or with cosigner(s), six options. To qualify for a Partnership Loan, the borrower or cosigner(s) must have a FICO score of at least 670. If the FICO score is: 750 or greater, the origination fee will be 0% , the origination fee will be 3%. Options Fixed-Rate Option Requiring Immediate Principal and Interest Payments 6.15% fixed interest rate 0% or 3% origination fee 6.15% APR 1 or 6.83% APR 2 Required principal and interest payments begin once the loan is fully disbursed 10-year principal and interest repayment period Variable-Rate Option Requiring Immediate Principal and Interest Payments Variable interest rate of 4.15% + 3-month Libor index 3 0% or 3% origination fee 4.38% APR 4 or 5.04% APR 5 1 Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee and a fixed interest rate of 6.15% during the 120-month principal and interest repayment period. APR shown is based on rates effective as of July 1, Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 3% origination fee and a fixed interest rate of 6.15% during the 120-month principal and interest repayment period. APR shown is based on rates effective as of July 1, The rate is subject to increase after consummation. The three-month Libor index is defined as the daily average of the threemonth London Interbank Offered Rate (Libor) (currency in U.S. dollars) that was calculated and published on the British Bankers Association s website on each business day during the 91-day period ending on the 20th day of March, June, September and December. The three-month Libor index for the quarter July 1 Sept. 30, 2014, is 0.23%. The rate will not exceed 21.00%. 4 Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee and maintaining a constant interest rate on a variable rate loan of 4.38% during the 120-month principal and interest repayment period. APR examples are based on quarterly interest rates for July 1 Sept. 30, Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 3% origination fee and maintaining a constant interest rate on a variable rate loan of 4.38% during the 120-month principal and interest repayment period. APR examples are based on quarterly interest rates for July 1 Sept. 30,

15 Required principal and interest payments begin once the loan is fully disbursed 10-year principal and interest repayment period Fixed-Rate Option Requiring Immediate Interest-Only Payments 6.40% fixed interest rate 0% or 3% origination fee 6.40% APR 6 or 6.83% APR 7 Interest-only payments required while enrolled and during the six-month separation period Principal and interest repayment begins six months after in-school period ends 10-year principal and interest repayment period Variable-Rate Option Requiring Immediate Interest-Only Payments Variable interest rate of 4.40% + 3-month Libor index 3 0% or 3% origination fee 4.63% APR 8 or 5.03% APR 9 Interest-only payments required while enrolled and during the six-month separation period Principal and interest repayment begins six months after in-school period ends 10-year principal and interest repayment period Fixed-Rate Option Delaying Repayment While Enrolled 6.89% fixed interest rate 0% or 3% origination fee 6.56% APR 10 or 6.85% APR 11 Deferred payments while enrolled Principal and interest repayment begins six months after in-school period ends 15-year principal and interest repayment period Variable-Rate Option Delaying Repayment While Enrolled Variable interest rate of 4.75% + 3-month Libor index 3 0% or 3% origination fee 6 Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal for 51 months and a fixed interest rate of 6.40% during the 51-month in-school and separation period and the 120-month principal and interest repayment period. APR shown is based on rates effective as of July 1, Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 3% origination fee, deferring principal for 51 months and a fixed interest rate of 6.40% during the 51-month in-school and separation period and the 120-month principal and interest repayment period. APR shown is based on rates effective as of July 1, Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal for 51 months and maintaining a constant interest rate on a variable rate loan of 4.63% during the 51-month in-school and separation period and the 120-month principal and interest repayment period. APR examples are based on quarterly interest rates for July 1 Sept. 30, Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 3% origination fee, deferring principal for 51 months and maintaining a constant interest rate on a variable rate loan of 4.63% during the 51-month in-school and separation period and the 120-month principal and interest repayment period. APR examples are based on quarterly interest rates for July 1 Sept. 30, Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring interest and principal for 51 months and a fixed interest rate of 6.89% during the 51-month in-school and separation period and the 180-month principal and interest repayment period. APR shown is based on rates effective as of July 1, Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 3% origination fee, deferring interest and principal for 51 months and a fixed interest rate of 6.89% during the 51-month in-school and separation period and the 180-month principal and interest repayment period. APR shown is based on rates effective as of July 1,

16 4.80% APR 12 or 5.09% APR 13 Deferred payments while enrolled Principal and interest repayment begins six months after in-school period ends 15-year principal and interest repayment period Additional Partnership Loan Information Applicants and cosigners must complete the interactive Student Loan Game Plan SM tutorial during the application process. See additional information about Student Loan Game Plan following the loan information. Minimum borrowing amount of $1,001. The minimum loan amount differs for residents of the following states: Colorado ($3,001 minimum), Oklahoma ($4,701 minimum), South Carolina ($3,501 minimum) and Wisconsin ($2,001 minimum) Maximum annual amount: cost of attendance minus other aid; subject to school certification. Maximum cumulative amount: $80,000. Borrowers with delinquencies during the principal and interest repayment periods or interest-only repayment periods may have future disbursements and/or loans suspended or canceled. If a pre-disbursement loan cancellation results in a Partnership Loan of $1,000 or less, the maximum principal and interest repayment term is 37 months. Iowa Student Loan will always forgive the loan and not require cosigner(s) to satisfy the loan obligation in the event of the death of a borrower. Iowa Student Loan does not require the borrower s estate to satisfy the loan obligation. In the event of a cosigner s death, Iowa Student Loan will forgive the cosigner s obligation and will not require the cosigner s estate to satisfy the loan obligation; however, the borrower will remain obligated for the loan. In addition, Iowa Student Loan will forgive the loan if a borrower is certified permanently disabled and unable to work again. Iowa Alliance Loan The Iowa Alliance Private Student Loan Program SM (Iowa Alliance Loan) is a no-cosigner private student loan for students who do not meet certain credit criteria and do not have a cosigner who meets the credit criteria. It is a high-cost loan that should only be considered after students have exhausted all other financial aid options. 12 Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring interest and principal for 51 months while maintaining a constant interest rate on a variable rate loan of 4.98% during the 51-month in-school and separation period and the 180-month principal and interest repayment period. APR examples are based on quarterly interest rates for July 1 Sept. 30, Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 3% origination fee, deferring interest and principal for 51 months while maintaining a constant interest rate on a variable rate loan of 4.98% during the 51-month in-school and separation period and the 180-month principal and interest repayment period. APR examples are based on quarterly interest rates for July 1 Sept. 30,

17 Variable interest rate of 4.50% + Prime rate index; minimum interest rate of 9.00% 14 10% origination fee 9.82% APR year principal and interest repayment period 16 Borrowers earn a 1.00% interest rate reduction after making the first 24 consecutive monthly principal and interest payments on time. To be eligible, the applicant must: Have been denied a supplemental private student loan requiring a cosigner for the same academic year for which he or she is applying for the Iowa Alliance Loan; Be an Iowa resident at grade level 3 or above for the term(s) he or she is requesting funds; OR be a non-iowa resident who has previously received an Iowa Alliance Loan and is at grade level 3 or above for the term(s) he or she is requesting funds; Be of majority age pursuant to applicable law at the time of application or be an emancipated minor; Not have defaulted on any private or government student loan; Be attending any nonprofit Title IV eligible, degree-granting, regionally accredited Iowa college or university or a nonprofit school of nursing in Iowa; Be accepted, enrolled or attending on at least a half-time basis, as defined by the school, and be making satisfactory academic progress in an eligible education program; and Be a citizen or permanent resident of the United States. Additional Iowa Alliance Loan Information Applicants must complete the interactive Student Loan Game Plan tutorial during the application process. See additional information about Student Loan Game Plan following the loan information. Minimum borrowing amount of $500 for Iowa Alliance Loan. The minimum loan amount differs for residents of the following states: Colorado ($3,001 minimum), Maine ($1,001 minimum), Oklahoma ($4,701 minimum), South Carolina ($3,501 minimum) and Wisconsin ($2,001 minimum) Maximum annual amount: cost of attendance minus other aid; subject to school certification Maximum cumulative amount: $80, The rate is subject to increase after consummation. The prime rate index is defined as the U.S. Prime Rate published by the Wall Street Journal on the 10th calendar day prior to month end March, June, September and December (or the preceding business day if the 10th calendar day is not a business day) or 4.50%; whichever is greater. The prime rate index for the quarter July 1 Sept. 30, 2014, is 4.50%. 15 Annual percentage rate (APR)is based on borrowing $10,000, deferring interest and principal and maintaining a constant interest rate on a variable rate loan of 9.00% during the 51-month interim and 240-month repayment periods. APR examples are based on quarterly interest rates for July 1 Sept. 30, A loan of $1,000 or less has a maximum repayment term of 37 months. 17

18 Iowa Student Loan will always forgive the loan in the event of the death of a borrower. Iowa Student Loan does not require the borrower's estate to satisfy the loan obligation. In addition, Iowa Student Loan will forgive the loan if a borrower is certified permanently disabled and unable to work again. Key Program Features: Student Loan Game Plan and the ROCI Reality Check Student Loan Game Plan Iowa Student Loan introduced Student Loan Game Plan during the academic year, first incorporating the interactive tool into its private student loan application, and then adding a tutorial for cosigners to complete as part of the application process. In addition, a version for high school and college students is available to the public at The decisions students make today about student loans can affect their financial future. While students often find it necessary to borrow some money to pay for college, Iowa students have higher debt loads than students in other parts of the country. Student Loan Game Plan helps students understand ways to borrow less and set the foundation for a financially responsible future. The information in Student Loan Game Plan can help students and their cosigners understand the consequences of overborrowing and, just as importantly, discover how to avoid overborrowing. Making a Difference Iowa Student Loan encourages students to consider borrowing less because: A solution is needed. Students at Iowa colleges and universities have increasingly high student loan debt at graduation. This practical resource is one way Iowa Student Loan is working to educate students on ways to reduce their borrowing. Student success matters. Helping students succeed is inherent in Iowa Student Loan s mission. By educating students about borrowing only what they can afford to repay, the organization encourages success both during and after college. Iowa Student Loan has a unique viewpoint. Because many borrowers have accounts with Iowa Student Loan throughout repayment, its loan counselors understand the daily challenges many customers face when loan payments are added to expenses. Default is avoidable. Iowa Student Loan works hard to help its borrowers avoid delinquency and default on their student loans. Student Loan Game Plan is a proactive step to help students avoid situations where delinquency and default are more likely. Providing Solutions to Real Risks Students often find it easier to borrow now and worry about it later. Student Loan Game Plan uses several methods to help borrowers understand the consequences of overborrowing: A true-life story from an actual borrower. Potential problems caused by overborrowing. Customized estimated salary information based on borrowers majors. 18

19 Estimated total student loan payment amounts based on past, current and future borrowing. An estimated student loan debt-to-income ratio based on the borrower s information, compared to recommended ratios from U.S. Department of Education regulations. A warning that student loans are a serious financial obligation that must be repaid. A sample monthly budget based on the borrower s anticipated starting salary and national-average expenses, including student loan payments. A variety of strategies to reduce the need for student loans. A customizable and printable action plan to reduce overall borrowing. The ability to lower the requested loan amount in Iowa Student Loan online private student loan applications. Outcome Between July 1, 2013, and June 30, 2014, 16.3% of student loan applicants who completed the Applicant s Guide to Successful Borrowing reduced their loan amount by an average of $2,600. ROCI Reality Check Iowa Student Loan introduced the ROCI Reality Check during the academic year. This resource helps students discover how to maximize their return on college investment or ROCI. It allows users to see the most common jobs held by graduates of a selected major so that students can sort and compare results to help determine their ROCI. The ROCI Reality Check also helps college students prepare for a financially beneficial career path. The ROCI Reality Check is vital to anyone planning to borrow money for college because: College degrees continue to cost more. As students take on more debt to finance college, they must take steps to ensure the end justifies the means. Informed decisions are better decisions. This information helps students understand whether they are likely to realize their desired financial results from a college degree. The choice of a major matters. The ROCI Reality Check lets students compare majors earnings potential, job prospects and maximum suggested student loan debt level. Students expect convenience. Users can easily compare many job titles in one location. Appropriate preparation is key. Tips for landing the jobs that allow graduates to enjoy their expected lifestyle are incorporated throughout the ROCI Reality Check. Helping Students with Beneficial Features The ROCI Reality Check offers several features that help students prepare for a financially beneficial career path. Before and after quizzes measure students understanding of their major choice, career interests and student loan debt. A focus on financial return helps put in perspective the possible outcome for a student s investment of time, money and effort in college. Expanded job information is provided through links to the U.S. Bureau of Labor Statistics. 19

20 Tips for improving job chances and a custom action plan help students understand how to improve their chances in the job market. Links to resources about borrowing for college and career planning let students explore more tools. The ROCI Reality Check is not included within Iowa Student Loan s private loan applications, but it is easily available to all borrowers on the public website to assist them with their financial decision-making. Contact Information Iowa Student Loan Liquidity Corporation Phone: Ashford II Building 6775 Vista Drive West Des Moines, IA

21 Kentucky Higher Education Student Loan Corporation Loan Programs & Rates KHESLC offers student and parent loans Kentucky Advantage Education Loan Kentucky Advantage Parent Loan Advantage Education Loan Advantage Parent Loan These loans offer an interest rate which is FIXED for the life of the loan. The rate could be as low as 4.95%. The exact rate will depend on creditworthiness and choice of payment plan. Loans are funded and serviced by our state-based, Kentucky non-profit agency. Borrowers can reside in any state and attend school at any eligible institution. Kentucky Advantage Education Loan AND Advantage Education Loan (for students) Three repayment options 1. Immediate Repayment Principal Plus Interest to 7.09% FIXED interest rate - 0% to 2% Guarantee fee % Interest rate reduction for auto debit - Repayment begins as soon as the loan is fully disbursed. 2. Immediate Repayment Interest Only to 7.09% FIXED interest rate - 0% to 2% Guarantee fee % Interest rate reduction for auto debit - Interest payments begin as soon as the loan is fully disbursed. Full repayment begins six months after the student leaves school or drops below half-time status. 21

22 3. Postponed Repayment % to 7.59% FIXED interest rate - 3% Guarantee fee % Interest rate reduction for auto debit - Repayment begins six months after the student leaves school or drops below half-time status. Available for undergraduate and graduate students enrolled in degree-granting colleges, universities and community colleges. Available for medical and dental students. Death and disability benefit: If student/borrower dies or becomes totally and permanently disabled prior to loan payoff, the student/borrower and cosigner are released from the outstanding debt. Annual loan amount may not exceed the cost of attendance less financial aid as certified by school. Minimum loan amount: $1,000. Loan decision is credit and income based. If the borrower has a limited credit history, questionable credit or no income, then we recommend applying with a creditworthy cosigner to receive more favorable terms. Student must be 18 years of age or older to apply without a cosigner. If the student is under 18, a cosigner is required. Kentucky Advantage Parent Loan AND Advantage Parent Loan (for parents) Three repayment options 1. Immediate Repayment Principal Plus Interest to 7.09% FIXED interest rate - 0% to 2% Guarantee fee % Interest rate reduction for auto debit - Repayment begins as soon as the loan is fully disbursed. 2. Immediate Repayment Interest Only to 7.09% FIXED interest rate - 0% to 2% Guarantee fee % Interest rate reduction for auto debit - Interest payments begin as soon as the loan is fully disbursed. Full repayment begins six months after the student leaves school or drops below half-time status. 3. Postponed Repayment % to 7.59% FIXED interest rate 22

23 - 3% Guarantee fee % Interest rate reduction for auto debit - Repayment begins six months after the student leaves school or drops below half-time status. Available for parents of undergraduate and graduate students enrolled in degree-granting colleges, universities and community colleges. Fixed interest rate is lower than Federal PLUS Loan interest rate. Fees are lower than Federal PLUS Loan fees. Death benefit: If the benefitting student dies prior to loan payoff, the borrower and cosigner are released from the outstanding debt. Annual loan amount may not exceed the cost of attendance less financial aid as certified by the school. Minimum loan amount: $1,000. Parent and stepparent are eligible to borrow. Loan decision is credit and income based. If the borrower has a limited credit history, questionable credit or no income, then we recommend applying with a creditworthy cosigner to receive more favorable terms. How To Access Loan Applications Apply via the direct portal to the Advantage Education Loan site. Click on APPLY NOW, which displays the first step of the student s online application. Call KHESLC at To have an application sent to the applicant via . General Information for all loans KHESLC advises students and families to: - Apply for all free student aid first (grants and scholarships), such as federal and state aid; - Apply for Federal Stafford Loans; and - Apply for the Advantage Loans only to supplement other awarded financial aid. Six-month grace period allowed for borrowers who choose the Immediate Repayment Interest Only or Postponed Repayment option. Loans funded and serviced by our state-based, non-profit agency. 10-year repayment term, which can be extended to 15 years in some cases. No prepayment penalties. Loans can be made to students enrolled less than half time ONLY when on the Immediate Repayment Principal Plus Interest Plan. Deferred or reduced payments are available if having trouble making payments. 23

24 All loans are subject to credit and income approval. The interest rate is set at the time repayment terms are chosen and cannot be changed. Borrower benefit terms and conditions are subject to change without notice. Contact Information Kentucky Higher Education Student Loan Corporation Phone: for more information Phone: Loan Servicing once loans are disbursed P.O. Box Louisville, KY

25 Maine Educational Loan Authority Loan Programs & Rates The Maine Loan Three repayment options: o Immediate repayment Fixed interest rate of 5.50% 10-year repayment term o Interest-only repayment Fixed interest rate of 6.50% 15-year repayment term o Full deferment Fixed interest rate of 7.50% 15-year repayment term Available to undergraduate and graduate students 4% guarantee fee assessed for all borrowers, which is added to the principal balance of the loan at the time of disbursement 0.25% interest rate reduction with automatic debit payments Minimum loan amount of $1,000 Maximum loan amount is the cost of education minus other financial aid No annual or aggregate borrowing limits May be used to pay prior balance, up to one academic year For more information, please visit The Maine Medical Loan SM Available to medical students studying: - Doctor of Medicine - Doctor of Osteopathic Medicine - Doctor of Chiropractic - Doctor of Dental Medicine - Doctor of Dental Surgery or Doctor of Dental Science - Doctor of Optometry - Doctor of Podiatric Medicine - Doctor of Veterinary Medicine 25

26 Three repayment options: o Immediate repayment Fixed interest rate of 5.50% 10-year repayment term o Interest-only repayment Fixed interest rate of 6.50% 15-year repayment term o Full deferment Fixed interest rate of 7.50% 15-year repayment term 4% guarantee fee assessed for all borrowers, which is added to the principal balance of the loan at the time of disbursement 0.25% interest rate reduction with automatic debit payments Minimum loan amount of $1,000 Maximum loan amount is cost of education minus other financial aid Eligibility: - Student must be studying in one of the approved fields listed above - Students must be enrolled at least half-time - Requires sound credit history - Co-borrower may be required for credit approval For more information, please visit Financial Counseling and Literacy Student Loan Game Plan SM In an effort to assist students in understanding the consequences of over borrowing, MELA has incorporated the Student Loan Game Plan SM as a required part of all online student loan applications. This proactive step was taken in 2012 to help students avoid situations where delinquency and default are more likely. This interactive tool works to reduce student indebtedness by educating applicants and cosigners about responsible borrowing decisions and uses several methods to help borrowers avoid the dangers of the borrow now and worry about it later type of mentality. Utilizing customized estimated salary information, based on the borrower s major, and sample monthly budget numbers, based on the borrower s anticipated starting salary and national-average expenses, the program allows students to review potential loan debt-to-income ratios. The Student Loan Game Plan highlights everyday challenges often caused by over borrowing and provides solutions to real risks. The program allows potential borrowers to reduce their requested loan amount before proceeding with the application and offers the ability to create and print a targeted action plan to reduce overall borrowing. 26

27 By educating students on how to borrow only what they can afford to repay, MELA encourages responsible borrowing during college, which is key to a sound financial future after graduation. Personalized Forbearance Counseling MELA understands the daily challenges many customers face as they add student loan payments to their daily expenses. The Authority understands that default is avoidable and as such works hard to help borrowers avoid delinquency and default on their student loans. As part of MELA s default management services, borrowers who demonstrate a financial need for forbearance are required to participate in a forbearance counseling session provided by Maine Education Services (MES), free of charge to the borrower. The financial counseling program lasts approximately one hour and includes general financial literacy information and budget analysis, as well as a specific discussion on the pros and cons of forbearance. The counselors also review the different payment arrangements available under MELA s forbearance program. After the session, a final recommendation is made by MES regarding the forbearance request. General Information High quality, individualized customer service based in Maine Online loan application process Contact Information Maine Educational Loan Authority Phone: Presumpscot Street Portland, ME

28 Massachusetts Educational Financing Authority Loan Programs & Rates Undergraduate Education Loan Repayment options 1. Immediate Repayment 10-year repayment term - Fixed interest rate of 5.49% during the anticipated in-school period; 6.24% thereafter (APR 6.60%-6.94%) - 4% origination fee with a co-borrower, 7% without a co-borrower - Monthly payment per $10,000 borrowed: $ in-school, then payments step-up to as low as $ at the end of the in-school period - Interest payment and principal repayment begin 45 days after final disbursement 15-year repayment term - Fixed interest rate of 5.99% during the anticipated in-school period; 6.74% thereafter (APR 6.98%-7.25%) - 4% origination fee with a co-borrower, 7% without a co-borrower - Monthly payment per $10,000 borrowed: $88.72 in-school, then payments step-up to as low as $92.03 at the end of the in-school period - Interest payment and principal repayment begin 45 days after final disbursement 2. Interest Only Payment Fixed interest rate of 6.84% during the anticipated in-school period; 7.79% thereafter (APR 7.88%-8.26%) 4% origination fee with a co-borrower, 7% without a co-borrower Monthly payment per $10,000 borrowed: $60.06 in-school, then payments step-up to as low as $ at the end of the in-school period Interest payment begins 45 days after final disbursement in any academic year. Principal repayment begins after the end of the anticipated in-school period. Interest accrues at a higher rate after the end of the anticipated inschool period. 28

29 3. Deferred Repayment Fixed interest rate of 7.19% (APR 7.16%-7.77%) 4% origination fee with a co-borrower, 7% without a co-borrower Monthly payment per $10,000 borrowed: As low as $ Full in-school payment deferment Interest payment and principal repayment begin 6 months after the student graduates, leaves the program or reduces to less than half-time status. 4. Student Deferred with Co-borrower Release Fixed interest rate of 7.89% (APR 7.78% 8.48%) 4% origination fee with a co-borrower Monthly payment per $10,000 borrowed: As low as $ Full in-school payment deferment Interest payment and principal repayment begin 6 months after the student graduates, leaves the program or reduces to less than half-time status. The co-borrower may request release after 48 consecutive on-time payments if meeting then-current underwriting standards. Graduate Education Loan Repayment options 1. Interest-Only Payment 15-year repayment period Fixed interest rate of 6.84% during the anticipated in-school period; 7.79% thereafter (APR 7.99%-8.26%) 4% origination fee; 7% without co-borrower Monthly payment per $10,000 borrowed: $60.06 in-school, then payments step-up to as low as $ at the end of the in-school period Interest payment begins 45 days after final disbursement. Principal repayment begins after the end of the anticipated in-school period. 2. Deferred Repayment 15-year repayment period Fixed interest rate of 7.19% (APR 7.51%-7.77%) 4% origination fee;7% without co-borrower Monthly payment per $10,000 borrowed: As low as $ Full in-school payment deferment Interest payment and principal repayment begin 6 months after the student graduates, leaves the program or reduces to less than half-time status. 29