University of the Pacific School by ps94506

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									Loan Repayment Option for Class 2011
              Agenda
 Quick Review
 Distribution of Loan Summaries
 Class Statistics
 How to locate your loans
 What to do after graduation
 Loan Repayment Options
 Reminders
  Online Exit Counseling
     Federal Loans
     Institutional Loans
 Questions
Types of Loan Programs
         Federal Stafford Loan (FFELP)
            Subsidized
            Unsubsidized
        Federal GradPLUS Loan
        Federal Direct Student Loan
        Federal Perkins Loan
        Alternative/Private Loans
        Institutional Loans (Fishel, Arakelian)
        Health Professions Student Loans (HPSL)
        Consolidation Loans
Loan Types for DDS 2011
FFELP
Loan Periods 1, 2 and 3
•   Interest Rates for:
•   Subsidized and Unsubsidized = 6.8% fixed
•   Grad Plus = 8.5% fixed


DIRECT LOANS
Loan Period 4
•   Interest Rates for:
•   Subsidized and Unsubsidized = 6.8% fixed
•   Grad Plus = 7.9% fixed
Repayment Terms for Institutional Loans
                     Arakelian
                         Fishel                          Nevitt         Kellogg         Fritch
    GRACE        6   12                                  12             6               6
              months months                              months         months          months
    Interest  ½ of   5%                                  5%             ½ of            ½ of
    Rate      Prime* fixed                               fixed          Prime*          Prime*
    Repayment 10     10 years                            10             10 years        10 years
    Term      years                                      years

*Interest is adjusted annually. Current Prime Rate is 3.25% as of 2/25/10

Please Note - Pacific uses ECSI Inc. for billing and payment information for all institutional loans.
Deferments are processed by the Student Loan Department at Stockton (209)946-2446.
Loan Summaries
Class Statistics
    Average Loan Debt for
    DDS Class of 2011

   Lowest $5,667


   Highest $414,604


   Average $262,447
Average Loan Debt for
IDS Class of 2011

          Lowest $181,746
          Highest $245,480
          Average $219,623
              Impact of Interest Capitalization
           Unsubsidized Federal Stafford Loan
Loan Period            Principal Amount                  Est. Accrued Interest
                      Borrowed of Unsub                         at 6.8%
                           Stafford
1 Jul08-Mar09                   $32,000                             $7,070
2 Apr09-Dec09                   $32,000                             $5,438
3 Jan10-Sep10                   $32,000                             $3,262
4 Oct10-Jun11                   $32,000                            $1,268
      Total                    $128,000                            $17,038
Assumptions:
•LP1:Three disbursements   and 42-39-36 months of in-school deferment
•LP2:Three disbursements   and 33-30-27 months of in-school deferment
•LP3:Three disbursements   and 24-21-18 months of in-school deferment
•LP4:Three disbursements   and 15-12-9 months of in-school deferment
             Impact of Interest Capitalization
                 Federal Graduate Plus Loan
Loan Period            Principal Amount                  Est. Accrued Interest
                      Borrowed of GPlus                    at 8.5% & 7.9%
1 Jul08-Mar09                   $25,125                            $6,941
2 Apr09-Dec09                   $25,125                            $5,339
3 Jan10-Sep10                   $25,125                            $3,737
4 Oct10-Jun11                   $25,125                            $2,136
                               $100,500                           $18,153

 Assumptions:
 •LP1:Three disbursements   and 42-39-36 months of in-school deferment
 •LP2:Three disbursements   and 33-30-27 months of in-school deferment
 •LP3:Three disbursements   and 24-21-18 months of in-school deferment
 •LP4:Three disbursements   and 15-12-9 months of in-school deferment
               Impact of Interest Capitalization
            Unsubsidized Federal Stafford Loan
 Loan Period            Principal Amount                Est. Accrued Interest
                       Borrowed of Unsub                       at 6.8%
                            Stafford
1 Jul09-Mar10                  $32,000                                $4,894
2 Apr10-Dec10                  $32,000                                $3,262
3 Jan11-Jun11                  $32,000                                $1,268
       Total                   $96,000                                $9,424

Assumptions:
•LP1:Three disbursements and 30-27-24 months of in-school deferment
•LP2:Three disbursements and 21-18-15 months of in-school deferment
•LP3:Two disbursements and 12-9 months of in-school deferment
             Impact of Interest Capitalization
                 Federal Graduate Plus Loan
Loan Period            Principal Amount                Est. Accrued Interest
                      Borrowed of GPlus                  at 8.5% & 7.9%
1 Jul09-Mar10                 $32,707                            $6,255
2 Apr10-Dec10                 $32,707                            $4,170
3 Jan11-Jun11                 $32,707                            $1,622
                              $98,121                           $12,047

Assumptions:
•LP1:Three disbursements and 30-27-24 months of in-school deferment
•LP2:Three disbursements and 21-18-15 months of in-school deferment
•LP3:Two disbursements and 12-9 months of in-school deferment
Where are my loans?
Borrower Path to NSLDS

                    1. Go to:
                    www.nslds.ed.gov
                    2. Click on:
                    Financial Aid Review
                        Accept
                        Accept


                          Next
Borrower Path to NSLDS
               2.   Enter:
                    *Social Security number
                    *First two letter of the last
                        name
                    *Date of Birth
                    *FAFSA PIN (Personal
                        Identification Number)
                                    Borrower
                                 View of NSLDS



                                      Loan Menu




Click the number boxes to see loan detail
                                        Borrower
                                     View of NSLDS


                                        Loan Detail




Servicer Information Displays here
                                        Borrower
                                     View of NSLDS


                                        Loan Detail




Servicer Information Displays here
                                     Borrower
                                  View of NSLDS


                                      Loan Detail




Federal Servicer Information Displays here
What to do after graduation?
Looking Ahead
What happens after graduation?

                                            Does loan have a
                                            GRACE period?

                           YES                                           NO
              (e.g., Stafford, Direct Sub/Unsub,
                            Perkins)                        (e.g., Grad PLUS*, Consolidation)



             Repayment begins                                       Repayment resumes
             after grace period                                       after graduation
    • Stafford and Direct = 6 months                   (*exception for Grad PLUS first disbursed on/after July 1,
    • Perkins = 9 months                             2008—these loans get an automatic 6-month post-enrollment
                                                                             deferment)

                Start              Postpone
              payments             payments                   Start              Postpone
                                                            payments             payments
Loan Deferment During Residency or
     Graduate Dental Program
    Request In-school Deferment (Federal
     Loans)
        Find out if the program you’ll be attending
         will consider you a registered student
    Mandatory Forbearance
Loan Repayment Options
              Repayment Options
                    Federal Loans
   Standard (Fixed) Repayment
   Graduated Repayment
   Income-Sensitive Repayment (FFELP)
   Extended Repayment (if eligible)
   Income Based Repayment




      You’re allowed to change your payment plan
FFELP Repayment Options
Standard Repayment
   Monthly payment is fixed

   Maximum repayment period is 10 years

   Lowest cost in interest paid

   Highest initial monthly payments

      You’re allowed to change your payment plan
FFELP Repayment Options
Extended Repayment
   Fixed or graduated payments over a time period of
    up to 25 years

   Higher cost in interest paid

   Monthly payment less than Standard Repayment

   Must have more than $30,000 in FFELP loans

       You’re allowed to change your payment plan
FFELP Repayment Options
Graduated Repayment
   Payments start low, then increase in one or
    more increments over time

   Maximum repayment period is 10 years

   Results in higher cost of interest paid than
    under the Standard Repayment Plan

      You’re allowed to change your payment plan
FFELP Repayment Options
Income-Sensitive Repayment
   Eligibility based on expected total gross income
    received from all sources and loan amount

   Payment must at least equal interest charges

   Review and adjusted annually based on income
    charges

   Maximum repayment period is 15 years

      You’re allowed to change your payment plan
FFELP Repayment Options
Income Based Repayment (7/1/09)
   Adjusted annually based on:
        Household AGI
        Household size
        Poverty guidelines
        State residence
   Payment is 15% of “disposable” income if
    experiencing “partial financial hardship”

   Negative amortization allowed

   Maximum repayment period is 25 years

        You’re allowed to change your payment plan
Federal Loan Consolidation
   Combines several loans into one bigger loan
   Interest rate is the weighted average of loans being
    consolidated rounded up to the nearest 1/8 of a %
   Repayment begins after loan is consolidated
   Borrower benefits and terms on underlying loans are lost
   No prepayment penalties
   Various payment plans:
       Standard
       Graduated
       Extended
   Consolidation may not be financially beneficial for those
    borrowers with fixed interest rate
       The GradPlus loan interest rate loophole can reduce the interest
        rate on 8.5%
 Other Repayment Options to consider
 Loan Repayment Programs
   Federal Loan Forgiveness Program for Public
    Service – 7/1/09
   CDA Foundation Loan Repayment Program
    http://www.cdafoundation.org/receive/student_loan_repayment_grant_program
   National Health Service Corps Loan Repayment
    Program http://nhsc.bhpr.hrsa.gov/applications/lrp_07/index.asp
   California Health Professions Loan Repayment
    Program http://www.oshpd.ca.gov/HPEF/Schlrshp.html
   Indian Health Service Loan Repayment
    Program http://www.ihs.gov/MedicalPrograms/Dental/loan.cfm
Check with the Health Service Office of the state you’ll be practicing for
additional programs
      How much have you borrowed and
         what will it cost to repay?
             Standard repayment plan over               10 years
Average DDS Loan Borrowing                                       $262,500
Estimated Monthly Loan Payment                                          $3,528

 *Estimated monthly payment based on the following
     assumptions:
 •   $162,000   (principal)+   $17,000   (interest)   @ 6.8% = $2,059 per month
 •   $100,500 (principal)+ $18,000 (interest) @ 8.5% = $1,469 per month
 •   Standard repayment plan over 10 years
 •   No payment incentives
      How much have you borrowed and
         what will it cost to repay?
             Standard repayment plan over               20 years
Average DDS Loan Borrowing                                       $267,500
Estimated Monthly Loan Payment                                          $2,394

 *Estimated monthly payment based on the following
     assumptions:
 •   $162,000   (principal)+   $17,000   (interest)   @ 6.8% = $1,366 per month
 •   $100,500 (principal)+ $18,000 (interest) @ 8.5% = $1,028 per month
 •   Standard repayment plan over 20 years
 •   No payment incentives
      How much have you borrowed and
         what will it cost to repay?
             Standard repayment plan over               25 years
Average DDS Loan Borrowing                                       $267,500
Estimated Monthly Loan Payment                                          $2,196

 *Estimated monthly payment based on the following
     assumptions:
 •   $162,000   (principal)+   $17,000   (interest)   @ 6.8% = $1,242 per month
 •   $100,500 (principal)+ $18,000 (interest) @ 8.5% = $954 per month
 •   Standard repayment plan over 25 years
 •   No payment incentives
      How much have you borrowed and
         what will it cost to repay?
             Standard repayment plan over               10 years
Average IDS Loan Borrowing                                       $219,600
Estimated Monthly Loan Payment                                          $2,871

 *Estimated monthly payment based on the following
     assumptions:
 •   $121,500   (principal)+   $9,424   (interest)   @ 6.8% = $1,506 per month
 •   $98,121 (principal)+ $12,047 (interest) @ 8.5% = $1,365 per month
 •   Standard repayment plan over 10 years
 •   No payment incentives
      How much have you borrowed and
         what will it cost to repay?
             Standard repayment plan over   20 years
Average IDS Loan Borrowing                          $219,600
Estimated Monthly Loan Payment                             $1,955
 *Estimated monthly payment based on the following assumptions:
 •   $121,500 (principal)+ $9,424 (interest) @ 6.8% = $999 per month
 •   $98,121 (principal)+ $12,047 (interest) @ 8.5% = $956 per month
 •   Standard repayment plan over 20 years
 •   No payment incentives
      How much have you borrowed and
         what will it cost to repay?
             Standard repayment plan over   25 years
Average IDS Loan Borrowing                          $219,600
Estimated Monthly Loan Payment                             $1,795
 *Estimated monthly payment based on the following assumptions:
 •   $121,500 (principal)+ $9,424 (interest) @ 6.8% = $908 per month
 •   $98,121 (principal)+ $12,047 (interest) @ 8.5% = $887 per month
 •   Standard repayment plan over 25 years
 •   No payment incentives
Consolidation Loan - Both Stafford and GradPlus
REMINDERS
ALL FEDERAL LOAN BORROWERS
 MUST COMPLETE THE ONLINE
      EXIT COUNSELING
Click on:

Exit Counseling
   IMPORTANT REMINDER:
   Our records indicate that you have one of the following
    loans:
   Health Professional Student Loan (HPSL)
   Institutional Loans
       Arakelian
       Fishel
       Kellogg
       Nevitt
       Paul Fritch
   You are required to complete an additional On-Line
    Exit counseling prior to graduation. Instructions from
    Webmaster@ecsi.net will be sent to your school e-
    mail in April, 2011. Aside from a detailed instruction,
    this email will also provide you with your access
    information.
   Failure to complete the On-Line Exit Counseling will
    delay the release of your diploma.
Thank You
 Questions?

								
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