St. George s s University Exit Counseling Session Private/Alternative Loans

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1 St. George s s University Exit Counseling Session Private/Alternative Loans

2 Who needs an Exit Interview? An exit interview is required for all students that have separated from school with educational loans. It will assist you in understanding your options and responsibilities in order to manage your loans.

3 When does separation occur? Dropping below half time Withdrawing from school Graduation (For financial aid purposes, the graduation date immediately following the completion of rotations will be considered your separation date)

4 What type of loans does this apply to? SGU International Peace Loan (IPL) SGU Interim Veterinary Loan (IVL) SGU Interim Student Loan (ISL) Ed-Invest Vet Sub and UnSub Loans Ed-Invest Private Loans Other Private Loans Canadian Gov t t Loans

5 Some of the alternative loans borrowed in recent years: Ed-Invest Citiassist Salliemae GHELP or Signature TERI Bank of North Dakota Transition/Residency/Relocation Your lender(s) may not be listed in the examples above, only your credit report can confirm all of your private loans including those not taken at SGU

6 Where should I start? Organize your information Review the terms of your promissory notes Understand bank terminology and how it relates to you

7 Organizing your information Review your SGU loan history Loan history reflects principle only. Contact your servicer for principle and interest accrual. If you have school loans prior to SGU Confirm all alternative loans on your credit report. You can obtain a free copy at View all your federal loans at as well as on your credit report Confirm the status and servicer information on all loans. Know the interest rate of each loan Is the rate determined using PRIME or LIBOR? What is the margin (spread)? Refer to your disclosure statement or the servicer s s website for this information. Sort your loans by interest rate Costliest (highest interest rate) to least costly (lowest interest)

8 Key Words Capitalization- when the interest is added to the principle Default- failure to make loan payments. If this happens your loan will become payable in full immediately Deferment- a temporary postponement of the payments that MUST be approved by the lender. This entitlement must be in the terms of the promissory note. Interest will continue to accrue and capitalize. Forbearance- permission from a lender to temporarily postpone repaying the loan. An appeal to the lender can be made on case by case basis b for special consideration. Interest will continue to accrue Grace- A period of 6 or 9 months before the borrower enters repayment

9 What s s next? Contact the servicer of your alternative bank loan to review the terms of your notes Determine the length of your grace period Confirm if you have a Residency Deferment Verify any Forbearance option

10 Managing your SGU IPL, IVL loans Students must contact Valerie Cascio,, Director of Student Finance, prior to separation/graduation to discuss repayment options. Options are limited to full repayment prior to separation or consolidating Loan capitalizes at time of consolidation Rate is prime + 3% (some loans require a minimum rate of 10% ) 1 st payment will be due 9 months after consolidation Minimum payment $ per month 5 years to repay No Residency or forbearance option Servicing will be provided by TFC Credit Corp., details will be furnished upon consolidation

11 Managing your SGU ISL Students must contact Valerie Cascio,, Director of Student Finance, prior to separation/graduation to discuss repayment options. Options are limited to full repayment prior to separation or consolidating Loan capitalizes at time of consolidation Rate will be a variable rate based on 3 month LIBOR % 1 st payment will be due 6 months after consolidation Minimum payment $ per month 10 years to repay No Residency or forbearance option Servicing will be provided by TFC Credit Corp., details will be furnished upon consolidation

12 Veterinary Subsidized and Unsubsidized Private 9 month grace period 10 year repayment No residency deferment 12 months forbearance option Ed-Invest loans Serviced by Great Lakes Higher Education Corporation. (GLHEC) Default Aversion by Brazos

13 Ed-Invest Loans Med/Vet/MPH 6 or 9 month grace period with Great Lakes Grace is exhausted if you are/were out of school for 6 or 9 consecutive months, your loan will go into repayment If the grace period is exhausted while in school, please contact Beth Cohen at [email protected] ext. 237 immediately to research your options Per the terms of your note, the only deferment available is the Alternative Loan residency deferment year repayment & minimum monthly payment are per terms of original note and must be verified with Great Lakes Review classes of 6 weeks or more are considered as in-school enrollment. It is your responsibility to provide Great Lakes with proper documentation from that course s s registrar

14 More Ed-Invest 12 month forbearance time -Up to 12 months allowed in 6 month increments -Interest will still accrue -Contact Great Lakes to request 4 years Residency deferment You must complete the Alternative Loan Residency Deferment Form ANNUALLY or your loan will go into repayment This form must be signed by your Residency Director Contact Great Lakes at as this form is NOT available online If your loan repayment (for any reason) becomes delinquent (by more m than 90 days) you will be contacted by Brazos default aversion department to assist you. Although they are a collections department, they are e there to help find solutions. Ed-Invest loans are ineligible for Fellowship Deferment - If you will be completing a Fellowship after your Residency program contact Brazos, your lender, to request additional deferment time at

15 Other lenders alternative loans Medical school loans should have residency deferment options. Most will offer up to 4 years Loans prior to medical school may not have deferment options Length of grace and repayment options are determined by Lender s loan program

16 Canadian Gov t t Loans Canadian Government loans have a 6 month grace period where interest accrues but payment is not due 2 interest rate options are available Fixed rate: Canadian Prime + 5% Floating rate: Variable Canadian Prime + 2.5% Reduced or interest only payment options Interest relief up to 30 months, extended interest relief up to an additional 24 months Upon separation the National Student Loan Service Centre (NSLSC) will be the servicer of your Government loans Contact NSLSC ( or not your province! New payment options will be available in August 09 (check with NSLSC for specific details)

17 It s s your right! To prepay your loan without penalty To be notified in writing if your loan is sold to another lender To get documentation when the loan is paid off

18 It s s your Responsibility!!! To review and understand the terms of your promissory notes To keep the servicer updated with correct contact information To notify your servicer of any change in your enrollment status If you can not make payment you MUST contact your servicer To repay the loans

19 Keep in mind This money is not a gift! You must repay your loan even if: You do not complete your degree Can t t find a job in your field Didn t t complete your program within the regular completion time

20 Tidbits Remember Private loans and Federal loans do not have the same terms If considering private loan consolidation are the terms of the note n you are getting better than the terms of the notes you are giving g up?can your consolidation be deferred during residency? When using follow the link for IBIS Update your deferments/forbearances annually Keep a copy of your loan history in a secure place Your SGU address will never be disabled If you do not have enough residency deferment or forbearance you can request special consideration for additional time to be granted at the lenders discretion.

21 Congratulations You ve completed your Exit Interview! Please know that we are available to assist you if you have a question or problem with your loans at any future time SGU c/o U.S.S. Financial Aid Office 1 East Main Street Bay Shore, New York [email protected] ext 232 Alumni please contact Beth at ext. 237 for assistance