Choosing to Understand: Student Loans

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Choosing to Understand Student Loans
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How are you paying for college?
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Student Loan Debt Nationwide
? Average student loan debt nationwide for
undergraduates is 15,375. ? Average student
loan debt nationwide for graduates is 32,716
(includes undergraduate debt).
Source American Council on Education Issue
Brief, November 2001
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Repayment Options
? Standard Repayment ? Graduated Payments ?
Income Sensitive ? Extended Repayment ? Loan
Consolidation
Source U.S. Department of Education (www.ed.gov)
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Interest on My Student Loan
A subsidized student loan the federal
government will pay the interest on your loan
while you are in school. An unsubsidized loan
you are responsible for paying interest that
begins accruing when you receive the loan.
Source U.S. Department of Education (wwww.ed.gov)
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Estimated Repayment for Federal Direct
Subsidized Loan
Minimum monthly payment
Source Dear Student Letter, OSFA
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Undergraduate Repayment
Source Dear Student Letter, OSFA
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Graduate Repayment
Source Dear Student Letter, OSFA
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Salary Requirements
Minimum Gross Annual Income Needed to Meet 8
Rule
Source Dear Student Letter, OSFA
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Median Incomes Nationally for Bachelor Degree
Source College Placement Council Annual Salary
Survey, July 1999
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Examples of Default Rates for Georgia Schools
Cohort FY 00
Medical College of Georgia 0.2 Emory
University 1.3 Georgia Institute of
Technology 1.5 Berry College
2.6 Morehouse School of Medicine
2.9 University of Georgia 2.9 Kennesaw
State University 3.6 Atlanta School of
Massage 3.8 National 5.6 Ultrasound
Diagnostic School 6.3 University of
Georgia 6.4 Empire Beauty School 12.1
Source Georgia Student Finance Commission
(www.gsfc.org)
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Delinquent vs Default
Delinquent failure to repay your loan on time
in accordance with the terms of your promissory
note. Delinquency begins on the day following
your loan payment due date.
Default failure to repay as agreed and the
failure has continued for 270 days.
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If you dont repay your loan on time...

• Youll grow to hate going to your mailbox.

You could have your automobile impounded.
Your employer could find out.
Youll be leery about answering your telephone.
Your pay could be garnished.
You could lose a professional license issued by
the state.
You could forfeit a state or federal income tax
refund.
You could be sued.
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The Main Points

• Student loan debt adds up quickly
• Have realistic expectations of your starting
  salary so you can estimate how much student loan
  debt you can afford
• Not paying back student loans can have major
  consequences
• Student Loans are NOT free money
• Only ask for what you NEED

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For Individual Help Contact
Consumer Credit Counseling Service https//onlinec
ounsel.cccsatl.org/gheac.asp 866-829-3438 (referra
l 017)