1. Loan Availability, Repayment andForgiveness programs Teresa Spurgin Action Research ProjectMasters Science of EducationKeiser University EDR610JUNE 29, 2012

2. Thank you for participating in this research project! This research is being conducted to collect information about how much you currently know about student financial aidloan availability, repayment, and forgiveness programsAfter this presentation, you will be asked to take the survey againto determine if this presentation was successful in aiding youin understanding more about student financial aid loan availability, repayment and forgiveness options available. Please do not participate in this research if you are not an undergraduate.Also, please remember that participation is strictly voluntary and you can stop participating at any time. 3. U.S. Department of Education provides loans to collegestudents through a program called Federal DirectStudent Loan Program (FDLP).These loans are intended to provide funds for:tuition & feesroom & boardbooks & school suppliestransportationtechnology needsnecessary dependent care http://www.studentloannetwork.com 4. Federal Student Aid ProgramsIn fact, the federal government provides 75 % of all available student aid.It makes sense to know as much as possible,about federal financial aid programs. The largest and most familiar federal student aid programs are: Pell Grant Stafford Loans Perkins LoansParent PLUS Direct Loan Graduate PLUS Loan Work-Study ProgramDirect Graduate PLUS LoanAcademic Competitiveness Grants (ACG) Supplemental Educational Opportunity Grant (FSEOG) Parent Loan for Undergraduate Students (PLUS) LoansNational Science and Mathematics Access to Retain Talent Grant (SMART)http://www.studentloannetwork.com 5. The Federal Pell Grant program is the largest need-based student aid program. According to the College Board, an estimated 3.7 million undergraduates received Pell Grants. For many students, these grants are the foundation of their financial aid package. Pell Grants are only awarded to undergraduate students who have not earned a bachelors or professional degree.http://www.studentloannetwork.com 6. Federal Stafford Student LoansStafford Student Loans are federal loans made to college and university students to supplement personal & family resources,scholarships, grants, and work-study. They may be subsidized by the U.S. Government or may beunsubsidized depending on the students financial need.Both subsidized and unsubsidized federal student loans areguaranteed by the Department of Education either directly or through guarantee agencies.Nearly all students are eligible to receive a Stafford Student Loan regardless of credit score or other financial issues.Both types offer a grace period of 6 months, which means that nopayments are due until 6 months after graduation or 3 months after the borrower becomes a less-than-full-time student without graduating. http://www.studentloannetwork.com 7. Parent PLUS Student LoansThe Parent PLUS Student Loan is available to parents of studentsenrolled at least part-time in a program included within a formal list of participating post-secondary institutions. PLUS loans differ from other federal student loans like the Stafford and Perkins loans in that it can cover a larger amount of the cost ofeducation, has a higher interest rate and the commitment is undertaken by the parent, rather than the student.PLUS Loans are also available for graduate and professionalstudents.Caution: These loans do not qualify for all loan repayment orforgiveness programs. Verify repayment or forgiveness options before using these programs.http://www.studentloannetwork.com 8. Graduate PLUS LoansThe Graduate PLUS Loan is similarto the Parent PLUS Loan in the way it is an unsubsidized,federally guaranteed loan, up to the cost of education.This loan is taken out in the graduate students name, on their own signature and credit rating. Federal loan deferment and forbearance options are the same as the Stafford Loan so graduate and professional students can postpone repayment while enrolled atleast half-time in a degree or certificate program.Caution:These loans do not qualify for all loan repayment or forgivenessprograms.Verify repayment or forgiveness options before using these programs.http://www.studentloannetwork.com 9. Federal Student Loan Consolidation After graduation, many students have a seriesof federal student loans (and payments),through the Stafford, PLUS or Perkins programs. When you consolidate federal student loansinto one single loan you realize a reducedmonthly payment (up to 53% less),a longer repayment term, and a fixed interest rate.To consolidate federal student loans, visit thegovernment website: http://www.ed.gov/studentaid http://www.studentloannetwork.com 10. Federal Perkins LoanThe Perkins Loan is a low-interest student loan for undergraduate and graduate students. In the case of Perkins Loans, the college acts as the lender,drawing funds from a small pool of money provided by the federal government.Perkins Loans are awarded based on exceptional financial need.A Federal Perkins Loan is a low-interest (5%) Federal student loan for both undergraduate and graduate students with exceptional financial need.You must repay this loan to your schooland the loan will be disbursed in at least twoseparate payments during the academic year. http://www.studentloannetwork.com 11. Finding Scholarships & Building CreditYou dont need to be one of the students who dont get all the financial aid they need.http://www.ed.gov/fund/grants-apply.html http://www.studentscholarshipsearch.com/ Building a good credit rating can helpsecure lower interest rates for private student loans,if your federal student loans do not cover all of your expenses. Opening a student credit card with small credit limitis a great way to start building credit history.CAUTION: Private Student Loans are not covered by the federalrepayment & forgiveness programs. Private lenders can be hard todeal with and hard to repay. Use them with extreme caution and research them completely. Make sure all federal funds are used first!http://www.studentloannetwork.com 12. Direct Stafford Loans for UndergraduatesThere are two different types of Direct Stafford Loans for Undergraduate students, subsidized and unsubsidized.Federal Direct Subsidized Loans are awarded based on financial need.No interest will be charged before you begin repayment or during periods of deferment.The federal government "subsidizes" the interest during these times.Federal Unsubsidized Direct Loans are not awarded based on financial needs.Any eligible student can take out unsubsidized Direct Stafford Loans. http://www.studentloannetwork.com 13. Direct Stafford Loans for UndergraduatesInterest will be charged from the time the loan isdisbursed, to the time the loan is repaid in full. The amount that can be borrow is basedon your grade level and status as a student.Independent students may be eligible to borrow morebecause they are paying for collegewithout assistance from family. It is important to note that even if a student is financing their education on their own,dependency status is still determined by the school. http://www.studentloannetwork.com 14. Perkins Loan Borrowing Limits & Repayment $4,000 for each year of undergraduate study the total amount you can borrow as an undergraduate is $27,500$8,000 for each year of graduate or professional study the total amount you can borrow as a graduate/professional student is $60,000, including any Federal Perkins Loans you borrowed as an undergraduateIf youre attending school at least half-time, you have 9 months afteryou graduate, leave school, or drop below half-time status beforeyou must begin student loan repayment (you might have longer than9 months if youre on active duty with the military).This period of time is called a grace period.At the end of your grace period, you must begin repaying your loan.You may be allowed up to 10 years to repay.http://www.studentloannetwork.com 15. Best source of information is the website for federal student loans. http://www.ed.gov/studentaid http://www.myfedloan.orghttp://studentloannetwork.comAnother good source of information is the institution you wish toattend.Check out several institutions since you may qualify for additional scholarships & grants connected to different institutions. High school counselors usually have information sent to them byinstitutions & they usually have additional information specific to yourcommunity or area of study.Also, check out professional associations related to your field of studyBeware of private or for-profit schools which may mislead you. 16. Going to college or technical schools to get trainingand/or degrees is one of the most important decisions of your life! Treat this decision with respect and research information on the institution & the costs connected with your educational pursuit! Federal Law requires all educational facilities,both private & public to provide a total cost estimateof your training or education.Know the repayment & forgiveness options availableBe prepared to take care of your responsibilityupon graduation and employment. 17. There are 7 Federal Repayment Programs: 1) Standard Repayment 2) Graduated Repayment 3) Extended Fixed Repayment 4) Extended Graduated Repayment 5) Income-Based Repayment (IBR) 6) Income-Contingent Repayment (ICR) 7) Income-Sensitive Repayment (ISR)http://www.myfedloan.org 18. Standard Repayment is the fastest and most cost-effective repayment plan.The minimum monthly payment under this plan is $50.Payments of principal and interest remain the same throughout repayment10-30 years maximum based on the balance for Consolidation Loans 10 years maximum for all other loan types If you cant afford your payments,choose another plan that fits your budget. No need to apply for this program since you automatically start repayment on this plan.http://www.myfedloan.org 19. The Graduated Repayment Program allows for lower payments to start, which gradually increase over time. Use this plan if a smaller monthly payment would be helpful in the beginning. Payments start lower and then increase later in repayment10-30 years maximum based on the balance for Consolidation Loans 10 years maximum for all other loan types Monthly Payment amounts varies throughout repayment program. This program assumes that your income will grow enough to afford increasing payments.Initial payments mainly cover interest, not the principal balance. http://www.myfedloan.org 20. If there is more than $30,000 in outstanding FDLP (Federal Direct LoanProgram) or FFEL (Federal Family Education Loan Program)Loans, this plan allows extension of the repayment term up to 25 yearsfor those programs for which your balance exceeds $30,000. Use this program when there is a lot of debt, but none of the other repayment plans work for the student. Payments of principal & interest remain the same throughout the repayment program. Small changes may occur if interest is capitalized any time during therepayment period.Payments are lower because the maximum repayment period isextended. Longer repayment period means higher interest costs.EXAMPLE: If you have $35,000 in outstanding FDLP loans & $10,000 in FFELLoans, you can choose this plan for the FDLP Loans but not for the FFEL Loans. Ifyou have $32,000 in your FFEL Loans, then you could use this program for bothyour FFEL Loans & your FDLP Loans. http://www.myfedloan.org 21. If there is more than $30,000 in outstanding FDLP (Federal Direct Loan Program) or FFEL (Federal Family Education Loan) Loans, this plan allows for extension of the repayment term up to 25 years for thoseprograms for which the balance exceeds $30,000. Use this plan if there is a lot of debt, but none of the other plans work for the student.Payment amounts varies during repayment program because initially payments are lower & then increase to larger payments. Monthly payments are lower because the maximum repayment period isextended.Longer repayment period means higher interest costs.EXAMPLE: If you have $35,000 in outstanding FDLP loans & $10,000 in FFELLoans, you can choose this plan for the FDLP Loans but not for the FFEL Loans. Ifyou have $32,000 in your FFEL Loans, then you could use this program for bothyour FFEL Loans & your FDLP Loans. http://www.myfedloan.org 22. Use this program when there is little or no income & mounds of student loan debt, Based on individual adjusted gross income(or with spouses, as applicable),including family size, and state of residence. Monthly payment maybe less than the interest that accrues each month.Monthly payment maybe as low as $0, and monthly payments are recalculated annually. This program may extend the repayment period past the standard 10 years to the maximum 25 years. Offers loan forgiveness after 25 years once you make the equivalent of 25 years qualifying monthly payments.DEFAULTED LOANS, PARRENT PLUS LOANS, OR CONSOLIDATED LOANSCONTAINING PARENT PLUS LOANS ARE NOT ELIGIBLE FOR THIS REPAYMENT PLAN. http://www.myfedloan.org 23. ICR calculates monthly payments based on individual adjusted gross income (and spouses income, if married), family size, and the total amount of eligible loan debt.Use this program if worried aboutmonthly payments and need some flexibility. Monthly payments will initially be at least the interest thataccrues each month until your official payment amount is calculated. Then it maybe less than the interest that accrues each month. Monthly payment maybe as low as $0. This plan requires you to provide documentation annually. Maximum repayment plan is 25 years. This plan offers loan forgiveness after 25 years once youmake the equivalent of 25 years of qualifying monthly payments.FFEL LOANS ARE NOT ELIGIBLE FOR THIS REPAYMENT PLAN. http://www.myfedloan.org 24. Under this plan, monthly payments are based on total monthly grossincome, and student must re-apply annually. Use this program when worried about monthly payments and need some flexibility.Monthly payments must at least coverthe interest that accrues each month.This plan is more expensive in the long runbecause the principal is repaid at a slower rate.DIRECT LOANS ARE NOT ELIGIBLE FOR THIS PROGRAM. http://www.myfedloan.org 25. A deferment or forbearance lets you temporarily postpone loanpayments. (http://www.myfedloan.org/) When having trouble making student loan payments, The student might qualify for payment relief through a deferment. A deferment is a temporary suspension of federal student loan payments for specific situations, for a specific period of time. Forbearance is a way to temporarily postpone or reduce your student loan repayment for a set period time. This typically takes place because the borrower is experiencing financial difficulty, but can be requested for any of the following reasons: Unemployment, Partial Disability, or Other documented hardship. Even if the borrower is ineligible for a deferment, he/she can still receive a forbearance. http://www.studentloannetwork.com 26. To encourage students to pursue certain careers, the federal government has created many programs that can forgive some or all of a borrowers student loan debt.Some of these programs overlap, and plan specifics change frequently. For the latest, most complete information about loan forgiveness, Visit: http://studentaid.ed.gov/ You can qualify for loan forgiveness by: Volunteering with AmeriCorps, Peace Corps or VISTAJoining the militaryWorking for the federal government or any state, local or tribal government Working for a nonprofit organizationTeaching in underserved communitiesProviding child care services in underserved communitiesServing in an Area of National Needhttp://www.ecmc.org 27. Volunteering with a qualifying entity can make a direct impact on your student loan debt. Here are the specific programs & contact information for participating volunteer organizations. AmeriCorps | 1-800-942-2677 Serve 12 months and you are eligible to receive $4,725 for yourloans. Peace Corps | 1-800-424-8580 Receive deferments for Stafford, Perkins and Consolidation loans, plus partial forgiveness of Perkins loans; 15% per year of service up to 70% of your loan total. Volunteers in Service to America (VISTA) | 1-800-942-2677 Provide 1700 hours of service and you are eligible to receive $4,725 for your loans or a modest stipend. This program is administered through AmeriCorps. http://www.ecmc.org/details/loanForgiveness.html 28. Each branch of the service has its own loan forgiveness program. Critical positions often qualify for a higher amount of loan forgiveness. For details, contact an armed forces recruiter or visit them online. U.S. Army has numerous funding options http://www.goarmy.com/benefits/education-benefits/money-for-college.html U.S. Army National Guard has many resources http://www.nationalguard.com/benefits/money-for-college U.S. Navy has a very interactive website with lots of information http://www.navy.com/joining/education-opportunities.html U.S. Marine Corps offers a variety of options http://www.marines.com/being-a-marine/benefits/-/benefits/detail/BENEFITS_EDUCATION U.S. Air Force has a variety of programshttp://www.airforce.com/benefits/enlisted-education/http://www.ecmc.org/details/loanForgiveness.html 29. If you are a public servant, you may qualifyfor Public Service Loan Forgiveness. Make payments through either the Income-Based Repayment (IBR) or Income-Contingent Repayment (ICR) plan for 10 years. After that time, any remaining student loan debt is forgiven. Use this program when there is high student loan debt and lowincome. Key features of Public Service Loan Forgiveness: The repayment term is 10 years, with payments through IBR or ICR Must be a full-time public servant After 10 years, any remaining student loan debts are forgiven Deferment and forbearance periods do not count toward the 10 years http://www.ecmc.org/details/loanForgiveness.html 30. A government organization: including a federal, state, local, or tribal organization,agency, or entity; a public child or family service agency; or a tribal college or universityA non-profit, tax-exempt organization under section 501(c)(3) of the Internal RevenueCode includes most not-for-profit private schools, colleges, and universities A private, non-profit organization (that is not a labor union or a partisan politicalorganization) that provides one or more of the following public services:Emergency managementMilitary servicePublic safetyLaw enforcement Public educationPublic library servicesPublic interest law servicesSchool library or other school-based servicesEarly childhood education (including licensed or regulated health care, Head Start, and state-fundedprekindergarten)Public service for individuals with disabilities andPublic health (including nurses, nurse practitioners, nurses in a clinical setting, and full-timeprofessionals engaged in health care practitioner occupationshttp://studentaid.ed.gov/students/attachments/siteresources/factsheet_PSLF.pdf 31. As a full-time teacher, you may qualifyfor complete cancellation of your Perkins loansand up to $17,550 in forgiveness for qualifying Stafford loans (both FFEL Program and Direct Loan Program borrowers).The key requirement is that you teach at a school that serveslow-income students. You can search for qualifying schools online.For details on loan forgiveness for teachers,visit the Federal Student Aid web pagesThe American Federation of Teachers maintains astate-by-state list of additional forgiveness programs forteachers.Visit the American Federation of Teachers website for details.http://www.ecmc.org/details/loanForgiveness.html 32. If you provide child care in an eligiblefacility that serves a low-income community, some or all of your undergraduate FFEL Programor Direct Loan Program Stafford loans may be forgiven. For more information, contactthe Child Care Provider Loan Forgiveness Programsupport desk of the Federal Student Aid officestoll-free at 1-888-562-7002. http://www.ecmc.org/details/loanForgiveness.html 33. The U.S. Congress designates certain occupations as Areas of National Need. If you work in one of these areas, you may qualify for$2,000 of loan forgiveness for each year you work in the field. You may claim up to 5 years of service for a total of $10,000.Speech-Language PathologistsAudiologists NursesEarly childhood educators Librarians TeachersChild Welfare workerPolice OfficersDentistFirst RespondersLegal AdvocatesCounselorsEmergency ManagementSTEM Employees FirefightersPhysical & Occupational TherapistsEmergency Medical Technician Elder CareOther Law Enforcement/Public Safety Foreign Language Specialists ProsecutionOfficersAnd the list goes on http://mappingyourfuture.org/paying/loanForgiveDetails.htm 34. There are other circumstances under which debt can beforgiven. Here are a few of those reasons: Closed School school closed before your programcompletion Death the student for whom the money was borrowed died Disability total and permanent disability False Certification if the school falsely certified youreligibility False Certification identity theft Spouses & Parents of September 11, 2001 Victims http://mappingyourfuture.org/paying/loanForgiveDetails.htm 35. If you treat your student financial aidlike the other subject areas you study, you can learn about the many opportunities available.As you can see there are many opportunities forfunding, repayment, and forgiveness programs. Be Responsible & Be Smart Investigate your total estimated educational costs & seek funds to not only pay the basics but to cover living expenses so that you cancomplete your education so that you can get a job and repay your loans.Help is out there! Information is out there! Dont let the lack of information stop you from succeeding.Be a smart consumer! 36. Keep all documents from FASFA in a notebook or file.Keep all statements and loan agreements in the same file. Go to the federal website:https://www.nslds.ed.gov/nslds_SA/SaFinShowSummary/ (National Student Loan Database for Students) To get a list of all your federal loans Research all you options for federal funding and use them! Do not take out alternative or private loans unless it isunavoidable! 37. http://www.hrsa.gov/loanscholarships/repayment/nursing/ (Health Resources and Services Administration) http://www2.ed.gov (Official U.S. Department of Education) http://www.ed.gov/fund/grants-apply.html (Department of Education Grants) http://www.studentscholarshipsearch.com/ (Free Scholarship Search funded by Student Loan Network) http://www.fafsa.ed.gov/ (Free Application for Federal Student Aid) http://www.knowhow2go.org/ (American Council on Education, Lumina Foundation for Education & AdCouncil) 38. In Conclusion.Please take the Exit Survey now that you have watchedthis informational presentation.Please answer all questions.Thank You for Participatingin this Action Research Projecton Student Financial Aid Information 39. http://www.studentloannetwork.com https://www.nslds.ed.gov/nslds_SA/SaFinShowSummary http://mappingyourfuture.org/paying/loanForgiveDetails.htm http://www.ecmc.org/details/loanForgiveness.html http://studentaid.ed.gov/students/attachments/siteresources/factsheet_PSLF.pdf http://www.ecmc.org http://www.ed.gov/studentaid http://www.myfedloan.org Additional information on Student Loan Network& the ECMC Foundation is expanded on the followingslides. 40. ECMC Foundation: As a nonprofit corporation providing services in support of higher education finance,we assist students and families in their efforts to plan and pay for college. For many low-income students, college seems out of reach. We challenge that attitude with innovative education programs and scholarships thathelp low-income, first-generation college-bound students plan for college, succeedacademically and achieve their dreams. Although legislation was passed in 2010 requiring all new federal loans to be issuedunder the Federal Direct Loan Program, we continue in our guarantor role bysponsoring programs to help students and families plan and pay for college. We work with schools and loan servicers to lower student loan default rates, promotefinancial literacy and provide resources to support student loan borrowers tosuccessfully repay their loans. We are the U.S. Department of Educations designated bankruptcy servicer and havebeen since 1994. We built a unique, uniform and comprehensive bankruptcy operation that protects thefederal fiscal interest and supports borrowers as they work through the bankruptcyprocess. 41. Student Loan Network educates students and parents on the best federal and alternative student loans and loan consolidation. Our goal isto provide you with the necessary knowledge and products to finance your education. This researcher chose to use this website as the maininformation reference due to the user-friendly approach and readability. The government website is more technical & hardto understand. The same information is available on the government websitecalled Federal Student Aid: http://studentaid.ed.gov/ Be aware that the Student Loan Network is a private website not associated with the federal government. It offers information about Federal Student Loans and Private/Alternative loans. Use caution when using any website not connected with the federal government, be a smart consumer.