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Loan Repayment

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					Federal Loan Exit Counseling:
  Preparing for Your Online
   Exit Counseling Session
Preparing for Your Online Exit Counseling Session
    • Getting organized –before you begin you online exit counseling
      session.

    • Terms you should know:

        Servicers

        NSLDS

        Grace Periods

        Student loan repayment options

        Deferment

        Avoiding default

    • List of Servicers

        Ask your Servicer
                                                                       2
    • Final Reminders
                 Getting Organized
• Before you begin your online exit counseling session, you will
 need:
  • Your FAFSA pin number.
      If you cannot remember your pin number, please visit
         http://www.pin.ed.gov/PINWebApp/pinindex.jsp to obtain your
         pin.
  • Log into the NSLDS website www.nslds.ed.gov using your
    FAFSA pin number
       • From the NSLDS website -You should print and review
         your loan history.
       • Be sure to review each loan to determine who is servicing
         your loan.
       • You can take a tour of the Online Exit Counseling session.    3
        Getting Organized, continued

•If you have only borrowed Federal loans at DePaul then all of
your loans are with Direct Loans. Direct Loans might have
assigned a “Servicer” to collect on your Federal Loans.
    Currently the following “Servicers” are working with Direct
    Loans: Great Lakes, Nelnet, ACS, PHEAA and Sallie Mae

•you will be asked for information that will be included as part
of your loan records.
    This includes names, addresses and phone numbers for
    your next of kin,
    two references who live in the United States,
    your future employer (if known).
    You will also need your driver’s license number(if you
    have one. )
                                                                   4
    Terms you Should Know: Loan Servicers
    The servicers listed are contracted by the Department of Education
    to manage the Direct Loans. They are responsible for the billing,
    collection and processing of all deferments, forbearances and
• Loan Servicers --They are organizations (Great Lakes, NelNet, ACS,
    cancellations.
PHEAA and Sallie Mae) that the Department of Education has
contracted to mange the Direct loans. They are responsible for the
billing, collection and processing of all deferments, forbearances and
cancelations.

•IMPORTANT : You will be receiving information from the Servicers
about any Federal Loans you have. Please be sure to read all materials
received in the mail as it will NOT be coming from Direct Loans.
• You can find who is “servicing” your loans at the NSLDS website.

•Servicer contact information provided later.
                                                                         5
           Terms you Should Know: NSLDS
• NSLDS– National Student Loan Data System for Students. This
    The servicers listed are contracted by the Department of Education
government website is the source for centralized loan information. It is
    to manage the Direct Loans. They are responsible for the billing,
a depository of all your federal loan records. You will find everything
    collection and processing of all deferments, forbearances and
you need to know about your loan at this website.
    cancellations.
•You will find the following information about your loans:
    Loan type, amounts, dates, disbursed amounts, outstanding
    principal balance, Servicer, etc.
    To find the Servicer information, drill down on each loan and it
    will provide all of the contact information.
    You also complete the online Federally required Exit Counseling at
    this site.

It is very important that you become familiar with all of the information on this
site. Any updates or changes to your loans are reported to NSLDS.
                                                                                6
   Terms you Should Know: Grace Period

After borrowers graduate, leave school, or drop below
 half-time enrollment, loans that were made for that
period of study have several months before payments
   are due. This period is called the "grace period".


*There is no penalty for prepayment on Federal Loans

           For more information please visit:
http://studentaid.ed.gov/PORTALSWebApp/students/e
                  nglish/repaying.jsp
                                                        7
Terms you Should Know: Payment Options



      Standard Repayment
      Extended Repayment
      Graduated Repayment
      Income Contingent Repayment
      Income Based Repayment


                                         8
Terms you Should Know: Payment Options
 Standard Repayment

 • You'll pay a fixed amount each month until your loans are paid
 in full. Your monthly payments will be at least $50, and you'll
 have up to 10 years to repay your loans
 • Monthly payments may be higher than other plans because your
 loans will be repaid in the shortest time, but you may pay the
 least interest.
    ~For Law Students, this plan may result in high monthly payments within a 10
 year repayment plan if a large amount of debt has been accumulated




                                                                                   9
Terms you Should Know: Payment Options
 Extended Repayment

 •Under the extended plan, you’ll pay a fixed annual or graduated
 repayment amount over a period not to exceed 25 years.
 •If you're a Direct Loan borrower, you must have more than
 $30,000 in outstanding Direct Loans.
 •Your fixed monthly payment is lower than it would be under the
 Standard Plan, but you'll ultimately pay more for your loan because
 of the interest that accumulates during the longer repayment
 period.

 * These plans are available to you if all your federal loans were taken out on or after
 10/07/1998.


                                                                                     10
Terms you Should Know: Graduated Repayment
   Graduated Repayment
   •With this plan, your payments start out low and increase every
   two years. The length of your repayment period will be up to ten
   years. If you expect your income to increase steadily over time,
   this plan may be right for you
   •Your fixed monthly payment is lower than it would be under the
   Standard Plan, but you'll ultimately pay more for your loan because
   of the interest that accumulates during the longer repayment
   period.
   •Although your monthly payment will gradually increase, no single
   payment under this plan will be more than three times greater than
   any other payment.

   * These plans are available to you if all your federal loans were taken out on or after
   10/07/1998.
                                                                                       11
 Terms you Should Know: Payment Options

Income Contingent Repayment (ICR)
• Each year, your monthly payments will be calculated on the
basis of your adjusted gross income (AGI, plus your spouse's
income if you're married), family size, and the total amount of
your Direct Loans.
• If you haven't fully repaid your loans after 25 years (time
spent in deferment or forbearance does not count) under this
plan, the unpaid portion will be discharged. You may, however,
have to pay taxes on the amount that is discharged

~  As of July 1, 2009, graduate and professional student Direct PLUS Loan
borrowers are eligible to use the ICR plan.
                                                                            12
   Terms you Should Know: Payment Options

Income Based Repayment (IBR)

• eligible for IBR if the monthly repayment amount under IBR will be less
than the monthly amount calculated under a 10-year standard repayment
plan.
•25-YEAR CANCELLATION - If you repay under the IBR plan for 25 years
and meet certain other requirements, any remaining balance will be
cancelled
•10-YEAR PUBLIC SERVICE LOAN FORGIVENESS - If you work in public
service and have reduced loan payments through IBR, your remaining
balance after 10 years in a public service job could be cancelled if you
made loan payments for each month of those 10 years (120 payments).

                                                                      13
Terms you Should Know: Payment Options

Available only for Law Students:
10-YEAR PUBLIC SERVICE LOAN FORGIVENESS
INFORMATION
This program is very specific therefore the best way to gather
information is to do a search.

Search “Loan Forgiveness for Public Service Employees” using
any search engine.

                                                                 14
   Terms you Should Know: Consolidation
A Federal Consolidation Loan allows you to combine your
federal student loans into a single loan with one monthly
payment.
•Depending on the types of student loans you have, a
consolidation loan may or may not be a good decision for you.
If you don't need monthly payment relief, you should compare
the cost of repaying your unconsolidated loans against the cost
of repaying a consolidation loan
•You also should take into account the impact of losing any
borrower benefits offered under repayment plans for the
original loans (i.e. interest rate discounts, principal rebates,
loan cancellation benefits). You may lose those benefits if you
consolidate.
•If you have private loans, contact the lender to find out if you
can consolidate the private loans.                                15
     Terms you Should Know: Consolidation

A good start for basic information is the Direct Loan Consolidation
website. You should also call the Direct Loan Consolidation Center and
speak with a representative to get answers to these particular questions
for your own student loans.


Web: http://loanconsolidation.ed.gov/
Phone: (800) 557-7392




                                                                      16
Terms you Should Know: Postponing Repayment

Deferment - no payments are required if you meet specific eligibility
requirements; interest accrues if you have an unsubsidized Stafford Loan,
or PLUS loan. In that case, you must make payments toward the interest.
       Economic Hardship (maximum of 3 years)
       Unable to find full-time employment
       Forbearance (limited period of time; if you’re ineligible for
    deferment)
• You MUST continue making payments on your student loan until you
have been notified that your request for deferment has been granted.


For more info, Call the Direct Loan Servicing Center
(800) 848-0979
                                                                       17
  Terms you Should Know: Avoid Default
Generally, if you are more than 30 days past due on a payment, credit
 bureaus will be notified of your delinquency. Default occurs when you
 become more than 270 days past due on your payments or you fail to
 meet other terms of your promissory note.

Consequences:
  •   The delinquency and default will be reported to one or more credit bureaus and
      your credit history may be damaged for up to 7 years
  •   The entire loan amount, including interest, may be due immediately
  •   Your wages may be garnished
  •   You may no longer be eligible for revised payment schedules or deferments
  •   The loan may be referred to a collection agency
  •   Your federal and state tax refunds may be withheld
  •   May become ineligible for certain professional licensing
                                                                                       18
             Ask your Servicer
When you enter repayment…

•Ask your Servicer about any possible options
for instance, is there any interest rate
reduction if you sign up for automatic monthly
debit payments?
•Remember that you will be receiving letters
from one of the 5 organizations that Direct
Loans has assigned to service your loans.
Please pay close attention to any mail from
those organizations.                          19
                          list of servicers
Department of Education Student Loan   Great Lakes Educational Loan Services, Inc.
Servicing Center (ACS)                 Phone: 800/236-4300
Phone: 800/508-1378                    TDD/TTY: 800/236-4300
TDD/TTY: 800/662-1220 within New       Overseas: 608/246-1700
York State                             Website: www.mygreatlakes.org
TDD/TTY: 800/855-2880 outside New
York State
Web site: www.ed-servicing.com         Nelnet
                                       Phone: 888/486-4722
                                       TDD/TTY: 888/486-4722
FedLoan Servicing (PHEAA)
                                       Overseas: 303/696-3625
Phone: 800/699-2908                    Web site: www.nelnet.com
TDD/TTY: 800/722-8189
Overseas borrowers: 717-720-1985
Web site: www.myfedloan.org            Sallie Mae
                                       Phone: 800/722-1300
                                       Fax: 866/266-0178
                                       TDD/TTY: 877/713-3833
                                       Overseas: 254/554-4535
                                       Web site: www.salliemae.com                   20
                             Final Reminders

• Open and read your mail. If you’re living away from home, make sure all loan
 documents are forwarded to you.

• Notify your lender or servicer if you move, change your name, telephone
 number or e-mail address.

• Ask questions. If you’re unsure of your responsibilities as a borrower, contact
 your lender or servicer for information and answers.

• Communicate with your lender or servicer if you think you may run into problems
 during repayment – they can help. Lenders/servicers understand that new
 graduates can have problems making their student loan payments and want to
 hear from you so they can offer alternatives to make repayment more affordable.

• The Department of Education’s SFA Ombudsman’s Office is available to you if
 you are unable to receive proper assistance from your lender or guarantor. You
 can visit their website a http://ombudsman.ed.gov or call 1-877-557-2575.


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                         One last thing!


Please remember to visit www.nslds.ed.gov to formally
complete your mandatory Exit Counseling requirement.

                      Questions?
For further questions, please contact the Office of Financial Aid
at DePaul (312) 362-8091 option 5 , or the Direct Loans
Servicing Center (800) 848-0979

            Thanks!
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